Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Oct. 31, 2018 | Dec. 03, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | Avid Bioservices, Inc. | |
Entity Central Index Key | 704,562 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --04-30 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 56,067,867 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,019 | |
Emerging Growth Company | false | |
Small Business | true |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Oct. 31, 2018 | Apr. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 32,694 | $ 42,265 |
Trade and other receivables | 4,197 | 3,754 |
Contract assets | 5,092 | 0 |
Inventories | 9,736 | 16,129 |
Prepaid expenses | 774 | 679 |
Assets of discontinued operations | 0 | 5,000 |
Total current assets | 52,493 | 67,827 |
Property and equipment, net | 26,279 | 26,479 |
Restricted cash | 1,150 | 1,150 |
Other assets | 302 | 304 |
Total assets | 80,224 | 95,760 |
Current liabilities: | ||
Accounts payable | 3,223 | 1,909 |
Accrued payroll and related costs | 1,829 | 2,564 |
Contract liabilities | 17,307 | 27,935 |
Other current liabilities | 433 | 905 |
Liabilities of discontinued operations | 416 | 4,550 |
Total current liabilities | 23,208 | 37,863 |
Deferred rent, less current portion | 2,126 | 2,159 |
Capital lease, less current portion | 93 | 0 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock $0.001 par value; 5,000,000 shares authorized; 1,647,760 shares issued and outstanding at October 31, 2018 and April 30, 2018, respectively | 2 | 2 |
Common stock $0.001 par value; 150,000,000 shares authorized; 56,063,488 and 55,689,222 shares issued and outstanding at October 31, 2018 and April 30, 2018, respectively | 56 | 55 |
Additional paid-in-capital | 614,541 | 614,810 |
Accumulated deficit | (559,802) | (559,129) |
Total stockholders' equity | 54,797 | 55,738 |
Total liabilities and stockholders' equity | $ 80,224 | $ 95,760 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Oct. 31, 2018 | Apr. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 1,647,760 | 1,647,760 |
Preferred stock, shares outstanding | 1,647,760 | 1,647,760 |
Common stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 500,000,000 |
Common stock, shares issued | 56,063,488 | 55,689,222 |
Common stock, shares outstanding | 56,063,488 | 55,689,222 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | |
Income Statement [Abstract] | ||||
Contract manufacturing revenue | $ 10,178 | $ 12,782 | $ 22,767 | $ 39,859 |
Cost of contract manufacturing | 9,844 | 16,242 | 21,241 | 36,690 |
Gross profit (loss) | 334 | (3,460) | 1,526 | 3,169 |
Operating expenses: | ||||
Selling, general and administrative | 2,816 | 3,596 | 6,031 | 7,449 |
Restructuring charges | 0 | 1,258 | 0 | 1,258 |
Total operating expenses | 2,816 | 4,854 | 6,031 | 8,707 |
Operating loss | (2,482) | (8,314) | (4,505) | (5,538) |
Interest and other income, net | 119 | 13 | 181 | 37 |
Loss from continuing operations before income taxes | (2,363) | (8,301) | (4,324) | (5,501) |
Income tax benefit | 173 | 0 | 173 | 0 |
Loss from continuing operations | (2,190) | (8,301) | (4,151) | (5,501) |
Income (loss) from discontinued operations, net of tax | 739 | (4,323) | 739 | (8,328) |
Net loss | (1,451) | (12,624) | (3,412) | (13,829) |
Comprehensive loss | (1,451) | (12,624) | (3,412) | (13,829) |
Series E preferred stock accumulated dividends | (1,442) | (1,442) | (2,523) | (2,523) |
Net loss attributable to common stockholders | $ (2,893) | $ (14,066) | $ (5,935) | $ (16,352) |
Basic and diluted weighted average common shares outstanding | 56,008,541 | 45,097,474 | 55,889,325 | 44,935,600 |
Basic and diluted net (loss) income per common share attributable to common stockholders: Continuing operations | $ (0.06) | $ (0.21) | $ (0.12) | $ (0.18) |
Basic and diluted net (loss) income per common share attributable to common stockholders: Discontinued operations | 0.01 | (0.10) | 0.01 | (0.18) |
Net loss per share attributable to cmmon stockholders | $ (0.05) | $ (0.31) | $ (0.11) | $ (0.36) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (3,412) | $ (13,829) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,325 | 1,300 |
Stock-based compensation | 622 | 794 |
Gain on sale of research and development assets | (1,000) | 0 |
Changes in operating assets and liabilities: | ||
Trade and other receivables | (443) | 4,234 |
Contract assets | (2,204) | 0 |
Inventories | (1,478) | 16,581 |
Prepaid expenses | (95) | (300) |
Other non-current assets | 2 | 9 |
Accounts payable | 880 | (1,426) |
Accrued payroll and related expenses | (735) | (1,787) |
Contract liabilities | (2,715) | (24,906) |
Other accrued expenses and current liabilities | (741) | 172 |
Assets and liabilities of discontinued operations | (4,134) | (882) |
Deferred rent, less current portion | (33) | 572 |
Net cash used in operating activities | (14,161) | (19,468) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (446) | (1,809) |
Proceeds from sale of research and development assets | 6,000 | 0 |
Net cash provided by (used in) investing activities | 5,554 | (1,809) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Dividends paid on Series E preferred stock | (2,162) | (2,162) |
Net proceeds from issuance of common stock | 0 | 4,193 |
Proceeds from issuance of common stock under Employee Stock Purchase Plan | 114 | 216 |
Proceeds from exercise of stock options | 1,158 | 112 |
Principal payments on capital lease obligation | (74) | (154) |
Net cash (used in) provided by financing activities | (964) | 2,205 |
Net decrease in cash, cash equivalents and restricted cash | (9,571) | (19,072) |
Cash, cash equivalents and restricted cash at beginning of period | 43,415 | 47,949 |
Cash, cash equivalents and restricted cash at end of period | 33,844 | 28,877 |
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Accounts payable for purchase of property and equipment | 434 | 139 |
Property and equipment acquired under capital lease | $ 245 | $ 0 |
RECONCILIATION OF CASH (Unaudit
RECONCILIATION OF CASH (Unaudited) - USD ($) $ in Thousands | Oct. 31, 2018 | Apr. 30, 2018 | Oct. 31, 2017 | Apr. 30, 2017 |
Statement of Financial Position [Abstract] | ||||
Cash and cash equivalents | $ 32,694 | $ 42,265 | $ 27,727 | $ 46,799 |
Restricted cash | 1,150 | 1,150 | 1,150 | 1,150 |
Total cash, cash equivalents and restricted cash | $ 33,844 | $ 43,415 | $ 28,877 | $ 47,949 |
1. DESCRIPTION OF COMPANY AND B
1. DESCRIPTION OF COMPANY AND BASIS OF PRESENTATION | 6 Months Ended |
Oct. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF COMPANY AND BASIS OF PRESENTATION | 1. DESCRIPTION OF COMPANY AND BASIS OF PRESENTATION We are a contract development and manufacturing organization (“CDMO”) that provides a comprehensive range of services from process development to current Good Manufacturing Practices (“cGMP”) commercial manufacturing focused on biopharmaceutical products derived from mammalian cell culture for biotechnology and pharmaceutical companies. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) related to quarterly reports on Form 10-Q, and accordingly, they do not include all of the information and disclosures required by U.S. GAAP for annual financial statements. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2018. The condensed consolidated balance sheet at April 30, 2018 has been derived from audited financial statements at that date. The unaudited financial information for the interim periods presented herein reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial condition and results of operations for the periods presented, with such adjustments consisting only of normal recurring adjustments. Results of operations for interim periods covered by this Quarterly Report on Form 10-Q may not necessarily be indicative of results of operations for the full fiscal year or any other interim period. The unaudited condensed consolidated financial statements include the accounts of Avid Bioservices, Inc., and its subsidiaries. All intercompany accounts and transactions among the consolidated entities have been eliminated in the unaudited condensed consolidated financial statements. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts, as well as disclosures of commitments and contingencies in the financial statements and accompanying notes. Actual results could differ materially from those estimates and assumptions. Discontinued Operations For all periods presented, the operating results of our former research and development segment have been excluded from continuing operations and reported as income (loss) from discontinued operations in the accompanying unaudited condensed consolidated financial statements for all periods presented. In addition, the assets and liabilities related to our discontinued research and development segment are reported as assets and liabilities of discontinued operations in the accompanying unaudited condensed consolidated balance sheets at October 31, 2018 and April 30, 2018. For additional information on the discontinuation of our research and development segment, refer to Note 11, “Sale of Research and Development Assets”. Segment Reporting Historically, our business had been organized into two reportable operating segments: (i) our research and development segment, and (ii) our contract manufacturing services segment. However, as a result of the aforementioned discontinued operation of our research and development segment (Note 11), management has determined that the Company now operates in only one operating segment. Accordingly, we reported our financial results for one reportable segment to reflect this new organizational structure. Restructuring Restructuring charges consist of one-time termination benefits, including severance and other employee related costs related to a workforce reduction pursuant to a restructuring plan we implemented in August 2017 (fiscal year 2018). Under this restructuring plan, which we completed in October 2017, we incurred an aggregate of $1,588 in restructuring charges, of which $330 related to our discontinued research and development segment (Note 11) and $1,258 related to our contract manufacturing services segment. Going Concern The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability of the recorded assets or the classification of liabilities that may be necessary should it be determined that we are unable to continue as a going concern. At October 31, 2018, we had $32,694 in cash and cash equivalents. Our ability to fund our operations depends on the amount of cash on hand and our ability to generate sufficient revenue to cover our operations. We have expended substantial funds on our legacy research and development of pharmaceutical product candidates (discontinued operations) and our contract manufacturing business (continuing operations). As a result, we have experienced losses and negative cash flows from operations since our inception, and although we have discontinued our research and development segment, we expect negative cash flows from operations to continue until we can generate sufficient revenue to generate positive cash flow from operations. In the event we are unable to obtain sufficient business to support our operations beyond the next twelve months, we may need to raise additional capital. Our ability to raise additional capital in the equity markets to fund our obligations in future periods depends on a number of factors, including, but not limited to, the market demand for our common stock. The market demand or liquidity of our common stock is subject to a number of risks and uncertainties, including but not limited to, negative economic conditions, adverse market conditions, and adverse financial results. If we are unable to either raise sufficient capital in the equity markets or generate additional revenue, we may need to further restructure, or cease, our operations. In addition, even if we are able to raise additional capital, it may not be at a price or on terms that are favorable to us. As a result, we have concluded that there is substantial doubt about our ability to continue as a going concern within one year after the date that our accompanying unaudited condensed consolidated financial statements are issued. Reclassifications Certain prior year amounts related to deferred revenue and customer deposits have been reclassified to contract liabilities in our accompanying consolidated balance sheet for the fiscal year ended April 30, 2018 and in our accompanying consolidated statement of cash flows for the six months ended October 31, 2017 to conform to the current period presentation (Note 2). This reclassification had no effect on previously reported net loss. |
2. SUMMARY OF SIGNIFICANT ACCOU
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Oct. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606): Revenue from Contracts with Customers On May 1, 2018, we adopted ASC 606, as amended, to all contracts not completed as of May 1, 2018 using the modified retrospective method. Results for the reporting period beginning after May 1, 2018 are presented in accordance with ASC 606, while prior period amounts continue to be reported under the accounting standards that were in effect for the prior period. The accounting policy for revenue recognition for periods prior to May 1, 2018 is described in Note 2 of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2018. The cumulative effect of adopting ASC 606 resulted in a one-time adjustment of $2,739 to the opening balance of accumulated deficit. The cumulative effect adjustment relates to the recognition of revenue and related costs for customer contracts that transfer goods or services over time. Under ASC 606, the timing of the recognition of contract manufacturing revenue and the related cost of contract manufacturing associated with goods or services provided to customers with no alternative use are 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. By contrast, in the prior period, contract manufacturing revenue and the related costs were recognized upon completion of the performance obligation in accordance with accounting standards that were in effect in the prior period. Under these customer contracts the customer retains control of the product as it is being created or enhanced by our services and/or we are entitled to compensation for progress to date that includes an element of profit margin. The following table summarizes the cumulative effect of the adoption of ASC 606 on amounts previously reported in our consolidated balance sheet at April 30, 2018: As Reported April 30, 2018 ASC 606 Balance at May 1, 2018 Contract assets $ – $ 2,888 $ 2,888 Inventories 16,129 (7,871 ) 8,258 Contract liabilities 27,935 (7,913 ) 20,022 Other current liabilities 905 191 1,096 Accumulated deficit (559,129 ) 2,739 (556,390 ) The following tables summarize the effect of the adoption of ASC 606 on our unaudited condensed consolidated balance sheet at October 31, 2018 and our unaudited condensed consolidated statements of operations and comprehensive loss for the three and six months ended October 31, 2018: As Reported Effect of Change Higher/(Lower) Balance Contract assets $ 5,092 $ 5,092 $ – Inventories 9,736 (16,244 ) 25,980 Contract liabilities 17,307 (17,506 ) 34,813 Three Months Ended October 31, 2018 As Reported Effect of Change Higher/(Lower) Balance Without Adoption of ASC 606 Contract manufacturing revenue $ 10,178 $ 1,215 $ 8,963 Cost of contract manufacturing 9,844 (79 ) 9,923 Gross profit (loss) 334 1,294 (960 ) Operating loss (2,482 ) 1,294 (3,776 ) Loss from continuing operations (2,190 ) 1,294 (3,484 ) Six Months Ended October 31, 2018 As Reported Effect of Change Higher/(Lower) Balance Contract manufacturing revenue $ 22,767 $ 11,831 $ 10,936 Cost of contract manufacturing 21,241 7,905 13,336 Gross profit (loss) 1,526 3,926 (2,400 ) Operating loss (4,505 ) 3,926 (8,431 ) Loss from continuing operations (4,151 ) 3,926 (8,077 ) Revenue Recognition We derive revenue from contract manufacturing services provided under our customer contracts, which we have disaggregated into the following revenue streams: Manufacturing revenue The manufacturing revenue stream represents revenue from the manufacturing of customer product(s) derived from mammalian cell culture covering clinical through commercial manufacturing runs. Under a manufacturing contract, a quantity of manufacturing runs are ordered and the product is manufactured according to the customer’s specifications and typically only one performance obligation is included. Each manufacturing run represents a distinct service that is sold separately and has stand-alone value to the customer. The product(s) are manufactured exclusively for a specific customer and have no alternative use. The customer retains control of their product during the entire manufacturing process and can make changes to the process or specifications at their request. Under these agreements, we are entitled to consideration for progress to date that includes an element of profit margin. Revenue associated with this stream 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. Process development revenue The process development revenue stream represents revenue from non-manufacturing related services associated with the custom development of a customer’s product. Under a process development contract, the customer owns the product details and process, which has no alternative use. These process development projects are customized to each customer to meet their specifications and typically only one performance obligation is included. Each process represents a distinct service that is sold separately and has stand-alone value to the customer. The customer also retains control of their product as the product is being created or enhanced by our services and can make changes to their process or specifications upon request. Revenue associated with this stream 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. The following table disaggregates our contract manufacturing revenue for the three and six months ended October 31, 2018 and 2017 by revenue stream. Contract manufacturing revenue for the three and six months ended October 31, 2017 has not been adjusted in accordance with our modified retrospective adoption of ASC 606 and continues to be reported under the accounting standards that were in effect prior to our adoption of ASC 606 on May 1, 2018: Three Months Ended October 31, Six Months Ended October 31, 2018 2017 2018 2017 Manufacturing revenue $ 7,243 $ 11,437 $ 17,543 $ 36,236 Process development revenue 2,935 1,345 5,224 3,623 Total contract manufacturing revenue $ 10,178 $ 12,782 $ 22,767 $ 39,859 Contract balances The timing of revenue recognition, billings and cash collections results in billed trade receivables, contract assets (unbilled receivables), and contract liabilities (customer deposits and deferred revenue). Contract assets are recorded when our right to consideration is conditioned on something other than the passage of time. Contract assets are reclassified to trade receivables on the balance sheet when our rights become unconditional. Contract liabilities represent customer deposits and deferred revenue billed and/or received in advance of our fulfillment of performance obligations. Contract liabilities will convert to contract manufacturing revenue as we perform our obligations under the contract. We recognized contract manufacturing revenue of $3,063 and $10,025, respectively, during the three and six months ended October 31, 2018 for which the contract liability was recorded in the prior year. Practical expedients and contract costs We apply the practical expedient available under ASC 606 that permits us not to disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. In addition, we currently do not have any unsatisfied performance obligations for contracts greater than one year. Costs incurred to obtain or fulfill a contract are not material. These costs are generally employee sales commissions, which are expensed when incurred and included in selling, general and administrative expense in the accompanying condensed consolidated statements of operations and comprehensive loss. Cash and Cash Equivalents We consider all short-term investments readily convertible to cash with an initial maturity of three months or less to be cash equivalents. Restricted Cash Under the terms of three separate operating leases related to our facilities, we are required to maintain, as collateral, letters of credit during the terms of such leases. At October 31, 2018 and April 30, 2018, restricted cash of $1,150 was pledged as collateral under these letters of credit. 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, which indicate that their carrying value may not be recoverable. Long-lived assets are reported at the lower of carrying amount or fair value less cost to sell. For the six months ended October 31, 2018 and 2017, there were no indicators of impairment of the value of our long-lived assets. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance prioritizes the inputs used in measuring fair value into the following hierarchy: · Level 1 – Observable inputs, such as unadjusted quoted prices in active markets for identical assets or liabilities. · Level 2 – Observable inputs other than quoted prices included in Level 1, such as assets or liabilities whose values are based on quoted market prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. · Level 3 – Unobservable inputs that are supported by little or no market activity and significant to the overall fair value measurement of the assets or liabilities; therefore, requiring the company to develop its own valuation techniques and assumptions. As of October 31, 2018 and April 30, 2018, we do not have any Level 2 or Level 3 financial assets or liabilities and our cash equivalents, which are primarily invested in money market funds with one major commercial bank, are carried at fair value based on quoted market prices for identical securities (Level 1 input). In addition, there were no transfers between any Levels of the fair value hierarchy during the three and six months ended October 31, 2018 and 2017. Stock-based Compensation We account for stock options, restricted stock rights and other stock-based awards granted under our equity compensation plans in accordance with the authoritative guidance for stock-based compensation. The estimated fair value of stock options granted to employees in exchange for services is measured at the grant date, using a fair value based method, such as a Black-Scholes option valuation model, and is recognized as expense on a straight-line basis over the requisite service periods. In addition, the fair value of restricted stock rights is measured at the grant date based on the closing market price of our common stock on the date of grant, and is recognized as expense on a straight-line basis over the period of vesting. Forfeitures are recognized as a reduction of stock-based compensation expense as they occur. As of October 31, 2018, there were no outstanding stock-based awards with market or performance conditions. 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. As a result of our cumulative losses, management has concluded that a full valuation allowance against our net deferred tax assets is appropriate. The income tax benefit recognized in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss during the three and six months ended October 31, 2018 resulted from the “Intraperiod Tax Allocation” rules under ASC 740: Income Taxes In December 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted. The Tax Act includes a number of changes to existing U.S. tax laws that impact us, most notably a reduction of the U.S. corporate income tax rate from 35 percent to 21 percent for tax years, effective January 1, 2018. We performed a review of the Tax Act for the fiscal year ended April 30, 2018, and based on the information available at that time, recorded certain provisional amounts related to the revaluation of our deferred tax assets and liabilities, which were fully offset by a valuation allowance. In December 2017, the SEC issued interpretive guidance under Staff Accounting Bulletin No. 118 to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. As discussed above, for the fiscal year ended April 30, 2018, we recognized provisional tax impacts related to the revaluation of deferred tax assets and liabilities, which amounts were fully offset by a valuation allowance. The ultimate impact may differ from these provisional amounts, due to among other things, additional analysis, changes in interpretations and assumptions we have made, additional regulatory guidance that may be issued, and actions we may take as a result of the Tax Act. The accounting for these provisions is expected to be complete when our 2017 U.S. corporate income tax return is filed in the first quarter of calendar year 2019. Adoption of Other Recent Accounting Pronouncements In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, New Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new standard requires lessees to recognize right-of-use assets and lease liabilities on its balance sheet for all leases with lease terms greater than 12 months and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, which will be our fiscal year 2020 beginning May 1, 2019. Early adoption is permitted. We are currently in the process of evaluating the impact of adoption of ASU 2016-02 on our condensed consolidated financial statements and related disclosures. |
3. TRADE AND OTHER RECEIVABLES
3. TRADE AND OTHER RECEIVABLES | 6 Months Ended |
Oct. 31, 2018 | |
Receivables [Abstract] | |
TRADE AND OTHER RECEIVABLES | 3. Trade and other RECEIVABLEs Trade receivables represent amounts billed for contract manufacturing services and are recorded at the invoiced amount net of an allowance for doubtful accounts, if necessary. Other receivables are reported at amounts expected to be collected net of an allowance for doubtful accounts, if necessary. Trade and other receivables consist of the following: October 31, 2018 April 30, 2018 Trade receivables $ 4,183 $ 3,539 Other receivables 14 215 Total trade and other receivables $ 4,197 $ 3,754 We continually monitor our allowance for doubtful accounts for all receivables. 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 accounts receivable balances, historical experience, and the financial condition of our customers. Based on our analysis of our receivables as of October 31, 2018 and April 30, 2018, we determined no allowance for doubtful accounts was necessary. |
4. INVENTORIES
4. INVENTORIES | 6 Months Ended |
Oct. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 4. INVENTORIES Inventories are recorded at the lower of cost or market (net realizable value) and include raw materials and work-in-process (comprised of raw materials, direct labor and overhead costs associated with in-process manufacturing services) associated with contract manufacturing services. Overhead costs allocated to work-in-process inventory are based on the normal capacity of our production facilities and do not include costs from abnormally low production or idle capacity, which are expensed directly to cost of contract manufacturing in the period incurred. During the three and six months ended October 31, 2018 and 2017, we expensed $2,923 and $4,652, respectively, and $4,938 and $5,838, respectively, in idle capacity costs directly to cost of contract manufacturing in the accompanying condensed consolidated financial statements. Subsequent to the adoption of ASC 606, manufacturing costs associated with work-in-process are recorded to cost of contract manufacturing in the accompanying condensed consolidated financial statements as incurred. Cost is determined by the first-in, first-out method. Inventories consist of the following: October 31, 2018 April 30, 2018 Raw materials $ 9,648 $ 8,165 Work-in-process 88 7,964 Total inventories $ 9,736 $ 16,129 |
5. PROPERTY AND EQUIPMENT
5. PROPERTY AND EQUIPMENT | 6 Months Ended |
Oct. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 5. 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, generally ranging from three to ten years. Amortization of leasehold improvements is calculated using the straight-line method over the shorter of the estimated useful life of the asset or the remaining lease term. Construction-in-progress, which represents direct costs related to the construction of various equipment and leasehold improvements associated with our manufacturing facilities, are not depreciated until the asset is completed and placed into service. No interest was incurred or capitalized as construction-in-progress as of October 31, 2018 and April 30, 2018. All of our property and equipment are located in the U.S. Property and equipment, net, consists of the following: October 31, 2018 April 30, 2018 Leasehold improvements $ 20,738 $ 20,686 Laboratory equipment 12,380 10,258 Furniture, fixtures, office equipment and software 5,159 4,597 Construction-in-progress 1,644 3,310 Total property and equipment 39,921 38,851 Less accumulated depreciation and amortization (13,642 ) (12,372 ) Total property and equipment, net $ 26,279 $ 26,479 Depreciation and amortization expense for the three and six months ended October 31, 2018 was $683 and $1,325, respectively. Depreciation and amortization expense for the three and six months ended October 31, 2017 was $658 and $1,300, respectively. |
6. CAPITAL LEASE OBLIGATION
6. CAPITAL LEASE OBLIGATION | 6 Months Ended |
Oct. 31, 2018 | |
Leases [Abstract] | |
CAPITAL LEASE OBLIGATION | 6. Capital lease obligation In June 2018, we financed certain software under a capital lease agreement that bears interest at a rate of approximately 4.19% per annum. The gross value of software purchased under the capital lease of $245 and the related accumulated amortization of $34 are included in property and equipment, net in the accompanying unaudited condensed consolidated balance sheet at October 31, 2018. Minimum future lease payments under the capital lease as of October 31, 2018 are as follows: Fiscal Year ending April 30,: 2019 (remainder of fiscal year) $ – 2020 85 2021 97 Total minimum lease payments 182 Amount representing interest (11 ) Net present value minimum lease payments 171 Less current portion included in other current liabilities (78 ) Long-term portion included in capital lease obligation, less current portion $ 93 |
7. STOCKHOLDERS' EQUITY
7. STOCKHOLDERS' EQUITY | 6 Months Ended |
Oct. 31, 2018 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | 7. STOCKHOLDERS’ EQUITY Series E Preferred Stock Dividend The following table summarizes the 10.50% Series E Convertible Preferred Stock (the “Series E Preferred Stock”) quarterly dividend activity during the six months ended October 31, 2018: Declaration Date Record Date Payment Date Dividends Paid Dividend Per Share 6/6/2018 6/18/2018 7/2/2018 $ 1,081,000 $ 0.65625 9/5/2018 9/17/2018 10/1/2018 $ 1,081,000 $ 0.65625 Shares of Common Stock Authorized and Reserved for Future Issuance On October 4, 2018, our stockholders approved an amendment to our Certificate of Incorporation to decrease our authorized number of shares of common stock from 500,000,000 shares to 150,000,000 shares (the “Certificate of Amendment”). The Certificate of Amendment became effective upon filing with the Secretary of State of the State of Delaware on October 4, 2018. As of October 31, 2018, 56,063,488 shares of our common stock were issued and outstanding. In addition, our common stock outstanding as of October 31, 2018 excluded the following shares of our common stock reserved for future issuance: · 7,313,424 shares of common stock reserved for issuance under outstanding option grants and restricted stock rights and available for issuance under our stock incentive plans; · 1,231,699 shares of common stock reserved for and available for issuance under our Employee Stock Purchase Plan; and · 6,826,435 shares of common stock issuable upon conversion of our outstanding Series E Preferred Stock (1) _____________ (1) The Series E Preferred Stock is convertible into a number of shares of our common stock determined by dividing the liquidation preference of $25.00 per share by the conversion price, currently $21.00 per share. If all of our outstanding shares of Series E Preferred Stock were converted at the $21.00 per share conversion price, the holders of our Series E Preferred Stock would receive an aggregate of 1,961,619 shares of our common stock. However, we have reserved the maximum number of shares of our common stock that could be issued upon a change of control event assuming our shares of common stock are acquired for consideration of $5.985 per share or less. In this scenario, each outstanding share of our Series E Preferred Stock could be converted into 4.18 shares of our common stock. |
8. EQUITY COMPENSATION PLANS
8. EQUITY COMPENSATION PLANS | 6 Months Ended |
Oct. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EQUITY COMPENSATION PLANS | 8. equity compensation plans Stock Incentive Plans On October 4, 2018, our stockholders approved the Avid Bioservices, Inc. 2018 Omnibus Incentive Plan (the “2018 Plan”) which provides, among other things, the ability for us to grant stock options, restricted stock, stock appreciation rights, restricted stock units and other forms of share-based awards. The number of shares of our common stock authorized for issuance under the 2018 Plan is the sum of (A) 2,350,000 and (B) the aggregate number of shares of common stock available for the grant of awards under our 2009, 2010, and 2011 Stock Incentive Plans (the “Prior Plans”) as of October 4, 2018 (the “Effective Date” of the 2018 Plan). The 2018 Plan replaced the Prior Plans, and no new awards will be granted under the Prior Plans as of the Effective Date. However, any awards outstanding under the Prior Plans on the Effective Date will 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 will automatically become available for issuance under the 2018 Plan. As of October 31, 2018, we had an aggregate of 7,313,424 shares of our common stock reserved for issuance under our stock incentive plans, of which, 3,146,713 shares were subject to outstanding options and restricted stock rights and 4,166,711 shares were available for future grants of stock-based awards. Stock Options The following summarizes our stock option transaction activity for the six months ended October 31, 2018: Stock Options Shares Weighted Average Exercisable Price Outstanding, May 1, 2018 3,597,738 $ 8.74 Granted 439,647 $ 5.05 Exercised (334,556 ) $ 3.47 Canceled or expired (679,366 ) $ 11.26 Outstanding, October 31, 2018 3,023,463 $ 8.22 Restricted Stock Rights On June 15, 2018, the Compensation Committee of the Board of Directors granted an aggregate of 128,050 restricted stock right (“RSR”) awards to substantially all of our employees, excluding executive officers, which entitles the employee the right to be issued a share of our common stock upon vesting of the RSR. The RSR’s were granted under our 2011 Stock Incentive Plan and vest annually in equal installments over a four-year period. The RSR’s have an aggregate grant date fair value of $464, based on the closing market price of our common stock on the date of grant, which is amortized as stock-based compensation expense on a straight-line basis over the period of vesting. The following summarizes our restricted stock right transaction activity for the six months ended October 31, 2018: Restricted Stock Rights Shares Weighted Average Grant Date Fair Value Outstanding, May 1, 2018 – $ – Granted 128,050 3.62 Vested – – Forfeited (4,800 ) 3.62 Outstanding, October 31, 2018 123,250 $ 3.62 Employee Stock Purchase Plan We have reserved a total of 2,142,857 shares of our common stock to be purchased under our Employee Stock Purchase Plan (“ESPP”), of which 1,231,699 shares remained available to purchase at October 31, 2018, and are subject to adjustment as provided in the ESPP for stock splits, stock dividends, recapitalizations and other similar events. Under the ESPP, we sell shares to participants at a price equal to the lesser of 85% of the fair market value of our common stock at the (i) beginning of a six-month offering period, or (ii) end of the six-month offering period. The ESPP provides for two six-month offering periods each year; the first offering period begins on the first trading day on or after each May 1; the second offering period begins on the first trading day on or after each November 1. During the six months ended October 31, 2018, 39,710 shares of our common stock were purchased under the ESPP at a purchase price of $2.87 per share. Stock-Based Compensation Total stock-based compensation expense related to stock-based awards issued under our equity compensation plans is included in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss as follows: Three Months Ended October 31, Six Months Ended October 31, 2018 2017 2018 2017 Cost of contract manufacturing $ 85 $ 138 $ 170 $ 138 Selling, general and administrative 240 125 452 330 Discontinued operations – 46 – 326 Total $ 325 $ 309 $ 622 $ 794 Share-based compensation from: Stock options $ 275 $ 287 $ 529 $ 696 Restricted stock rights 27 – 42 – ESPP 23 22 51 98 Total $ 325 $ 309 $ 622 $ 794 As of October 31, 2018, the total estimated unrecognized compensation cost related to non-vested employee stock options and non-vested restricted stock rights was $3,118 and $404, respectively. These costs are expected to be recognized over a weighted average vesting periods of 2.93 years and 3.62 years, respectively. |
9. NET LOSS PER COMMON SHARE
9. NET LOSS PER COMMON SHARE | 6 Months Ended |
Oct. 31, 2018 | |
Earnings Per Share [Abstract] | |
NET LOSS PER COMMON SHARE | 9. NET LOSS PER COMMON SHARE Basic net loss per common share is computed by dividing our net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period, excluding the dilutive effects of stock options, unvested RSRs, shares of common stock expected to be issued under our ESPP, warrants, and Series E Preferred Stock outstanding during the period. Diluted net loss per common share is computed by dividing our net loss attributable to common stockholders by the sum of the weighted average number of shares of common stock outstanding during the period plus the potential dilutive effects of stock options, unvested RSRs, shares of common stock expected to be issued under our ESPP, warrants, and Series E Preferred Stock outstanding during the period. Net loss attributable to common stockholders represents our net loss plus Series E Preferred Stock accumulated dividends. Series E Preferred Stock accumulated dividends include dividends declared for the period (regardless of whether or not the dividends have been paid) and dividends accumulated for the period (regardless of whether or not the dividends have been declared). The potential dilutive effect of stock options, unvested RSRs, shares of common stock expected to be issued under our ESPP, and warrants outstanding during the period are calculated in accordance with the treasury stock method, but are excluded if their effect is anti-dilutive. The potential dilutive effect of our Series E Preferred Stock outstanding during the period was calculated using the if-converted method assuming the conversion of Series E Preferred Stock as of the earliest period reported or at the date of issuance, if later, but are excluded if their effect is anti-dilutive. However, because the impact of stock options, unvested RSRs, shares of common stock expected to be issued under our ESPP, warrants, and Series E Preferred Stock are anti-dilutive during periods of net loss, there was no difference between basic and diluted loss per common share amounts for the three and six months ended October 31, 2018 and 2017. The calculation of weighted average diluted shares outstanding for the three and six months ended October 31, 2018 and 2017 excludes the dilutive effect of the following weighted average outstanding stock options, unvested RSRs and shares of common stock expected to be issued under our ESPP as their impact is anti-dilutive during periods of net loss: Three Months Ended October 31, Six Months Ended October 31, 2018 2017 2018 2017 Stock Options 234,763 31,877 185,996 69,065 RSRs 55,963 – 30,645 – ESPP 16,401 – 9,090 133 Total 307,127 31,877 225,731 69,198 The calculation of weighted average diluted shares outstanding for the three and six months ended October 31, 2018 and 2017 also excludes the following weighted average outstanding stock options, warrants, and Series E Preferred Stock (assuming the if-converted method), as their exercise prices or conversion price were greater than the average market price of our common stock during the respective periods, resulting in an anti-dilutive effect: Three Months Ended October 31, Six Months Ended October 31, 2018 2017 2018 2017 Stock Options 2,238,986 3,600,478 2,599,877 3,608,917 ESPP – 43,332 – – Warrants 12,306 39,040 25,673 39,040 Series E Preferred Stock 1,978,783 1,978,783 1,978,783 1,978,783 Total 4,230,075 5,661,633 4,604,333 5,626,740 |
10. WARRANTS
10. WARRANTS | 6 Months Ended |
Oct. 31, 2018 | |
Warrants and Rights Note Disclosure [Abstract] | |
WARRANTS | 10. WARRANTS During the three and six months ended October 31, 2018, warrants to purchase 39,040 shares of our common stock expired unexercised. As of October 31, 2018, we had no warrants issued and outstanding. |
11. SALE OF RESEARCH AND DEVELO
11. SALE OF RESEARCH AND DEVELOPMENT ASSETS | 6 Months Ended |
Oct. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
SALE OF RESEARCH AND DEVELOPMENT ASSETS | 11. Sale of research and development assets February 2018 Asset Assignment and Purchase Agreement On February 12, 2018, we entered into an Asset Assignment and Purchase Agreement (the “February 2018 Purchase Agreement”) with Oncologie, Inc. (“Oncologie”) 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 $8,000 from Oncologie, paid over three installments, of which $3,000 was received in March 2018 (first installment), $3,000 was received in June 2018 (second installment) and $2,000 was received in September 2018 (third installment). We are also eligible to receive up to an additional $95,000 in the event that Oncologie 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 Oncologie commercializes and sells products utilizing bavituximab or the other transferred assets. As of October 31, 2018, no development, regulatory and commercialization milestones as defined in the February 2018 Purchase Agreement have been achieved by Oncologie. Oncologie 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 (i.e., we remain obligated for all liabilities associated with the research and development assets associated with the February 2018 Purchase Agreement incurred or arising prior to February 13, 2018). In addition, during May 2018, we entered into a separate services agreement with Oncologie to provide contract development and manufacturing services, at our commercial rates, in support of the research and development assets sold under the February 2018 Purchase Agreement. September 2018 Asset Assignment and Purchase Agreement On September 13, 2018, we entered into a separate Asset Assignment and Purchase Agreement (the “September 2018 Purchase Agreement”) with Oncologie pursuant to which we sold to Oncologie our r84 technology, which included the assignment of certain licenses, patents and other assets useful and/or necessary for the potential commercialization of the r84 technology. Pursuant to the September 2018 Purchase Agreement, we received $1,000 from Oncologie, which amount was paid to us in October 2018. We are also eligible to receive up to an additional $21,000 in the event that Oncologie 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 Oncologie commercializes and sells products utilizing the r84 technology. As of October 31, 2018, no development, regulatory and commercialization milestones as defined in the September 2018 Purchase Agreement have been achieved by Oncologie. Oncologie 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 (i.e., we remain obligated for all liabilities associated with the research and development assets associated with the September 2018 Purchase Agreement incurred or arising prior to September 13, 2018). Discontinued Operations As a result of the sale of our PS-targeting program and our r84 technology, 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 and the related assets and liabilities have been presented as discontinued operations in the accompanying unaudited condensed consolidated financial statements for all periods presented (Note 1). 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, the results of operations from the former research and development segment 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. The following table summarizes the results of discontinued operations for the three and six months ended October 31, 2018 and 2017: Three Months Ended October 31, Six Months Ended October 31, 2018 2017 2018 2017 Operating expenses: Research and development $ – $ 3,650 $ – $ 7,216 Selling, general and administrative – 343 – 782 Restructuring charges – 330 – 330 Total operating expenses $ – $ 4,323 $ – $ 8,328 Gain on sale of research and development assets before income taxes $ 1,000 – $ 1,000 – Income tax expense (261 ) – (261 ) – Income (loss) from discontinued operations, net of tax $ 739 $ (4,323 ) $ 739 $ (8,328 ) The following table summarizes the assets and liabilities of discontinued operations as of October 31, 2018 and April 30, 2018: October 31, 2018 April 30, 2018 Assets: Other receivables $ – $ 5,000 Total assets of discontinued operations $ – $ 5,000 Liabilities: Accounts payable $ – $ 32 Accrued clinical trial and related fees 117 3,613 Accrued payroll and related costs 174 614 Other liabilities 125 291 Total liabilities of discontinued operations $ 416 $ 4,550 The carrying value of the assets and liabilities deemed a component of discontinued operations were not classified as “held for sale” in the accompanying unaudited condensed consolidated balance sheet at October 31, 2018 and the accompanying condensed consolidated balance sheet at April 30, 2018, as Oncologie did not purchase or assume any of the reported assets or liabilities under the aforementioned February 2018 Purchase Agreement and September 2018 Purchase Agreement. |
12. SUBSEQUENT EVENTS
12. SUBSEQUENT EVENTS | 6 Months Ended |
Oct. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 12. SUBSEQUENT EVENTS On December 5, 2018, our Board of Directors declared a quarterly cash dividend of $0.65625 per share on our Series E Preferred Stock. The dividend payment is equivalent to an annualized 10.50% per share, based on the $25.00 per share stated liquidation preference, accruing from October 1, 2018 through December 31, 2018. The cash dividend is payable on January 2, 2019 to holders of the Series E Preferred Stock of record on December 17, 2018. |
2. SUMMARY OF SIGNIFICANT ACC_2
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Oct. 31, 2018 | |
Accounting Policies [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606): Revenue from Contracts with Customers On May 1, 2018, we adopted ASC 606, as amended, to all contracts not completed as of May 1, 2018 using the modified retrospective method. Results for the reporting period beginning after May 1, 2018 are presented in accordance with ASC 606, while prior period amounts continue to be reported under the accounting standards that were in effect for the prior period. The accounting policy for revenue recognition for periods prior to May 1, 2018 is described in Note 2 of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2018. The cumulative effect of adopting ASC 606 resulted in a one-time adjustment of $2,739 to the opening balance of accumulated deficit. The cumulative effect adjustment relates to the recognition of revenue and related costs for customer contracts that transfer goods or services over time. Under ASC 606, the timing of the recognition of contract manufacturing revenue and the related cost of contract manufacturing associated with goods or services provided to customers with no alternative use are 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. By contrast, in the prior period, contract manufacturing revenue and the related costs were recognized upon completion of the performance obligation in accordance with accounting standards that were in effect in the prior period. Under these customer contracts the customer retains control of the product as it is being created or enhanced by our services and/or we are entitled to compensation for progress to date that includes an element of profit margin. The following table summarizes the cumulative effect of the adoption of ASC 606 on amounts previously reported in our consolidated balance sheet at April 30, 2018: As Reported April 30, 2018 ASC 606 Balance at May 1, 2018 Contract assets $ – $ 2,888 $ 2,888 Inventories 16,129 (7,871 ) 8,258 Contract liabilities 27,935 (7,913 ) 20,022 Other current liabilities 905 191 1,096 Accumulated deficit (559,129 ) 2,739 (556,390 ) The following tables summarize the effect of the adoption of ASC 606 on our unaudited condensed consolidated balance sheet at October 31, 2018 and our unaudited condensed consolidated statements of operations and comprehensive loss for the three and six months ended October 31, 2018: As Reported Effect of Change Higher/(Lower) Balance Contract assets $ 5,092 $ 5,092 $ – Inventories 9,736 (16,244 ) 25,980 Contract liabilities 17,307 (17,506 ) 34,813 Three Months Ended October 31, 2018 As Reported Effect of Change Higher/(Lower) Balance Without Adoption of ASC 606 Contract manufacturing revenue $ 10,178 $ 1,215 $ 8,963 Cost of contract manufacturing 9,844 (79 ) 9,923 Gross profit (loss) 334 1,294 (960 ) Operating loss (2,482 ) 1,294 (3,776 ) Loss from continuing operations (2,190 ) 1,294 (3,484 ) Six Months Ended October 31, 2018 As Reported Effect of Change Higher/(Lower) Balance Contract manufacturing revenue $ 22,767 $ 11,831 $ 10,936 Cost of contract manufacturing 21,241 7,905 13,336 Gross profit (loss) 1,526 3,926 (2,400 ) Operating loss (4,505 ) 3,926 (8,431 ) Loss from continuing operations (4,151 ) 3,926 (8,077 ) |
Revenue Recognition | Revenue Recognition We derive revenue from contract manufacturing services provided under our customer contracts, which we have disaggregated into the following revenue streams: Manufacturing revenue The manufacturing revenue stream represents revenue from the manufacturing of customer product(s) derived from mammalian cell culture covering clinical through commercial manufacturing runs. Under a manufacturing contract, a quantity of manufacturing runs are ordered and the product is manufactured according to the customer’s specifications and typically only one performance obligation is included. Each manufacturing run represents a distinct service that is sold separately and has stand-alone value to the customer. The product(s) are manufactured exclusively for a specific customer and have no alternative use. The customer retains control of their product during the entire manufacturing process and can make changes to the process or specifications at their request. Under these agreements, we are entitled to consideration for progress to date that includes an element of profit margin. Revenue associated with this stream 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. Process development revenue The process development revenue stream represents revenue from non-manufacturing related services associated with the custom development of a customer’s product. Under a process development contract, the customer owns the product details and process, which has no alternative use. These process development projects are customized to each customer to meet their specifications and typically only one performance obligation is included. Each process represents a distinct service that is sold separately and has stand-alone value to the customer. The customer also retains control of their product as the product is being created or enhanced by our services and can make changes to their process or specifications upon request. Revenue associated with this stream 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. The following table disaggregates our contract manufacturing revenue for the three and six months ended October 31, 2018 and 2017 by revenue stream. Contract manufacturing revenue for the three and six months ended October 31, 2017 has not been adjusted in accordance with our modified retrospective adoption of ASC 606 and continues to be reported under the accounting standards that were in effect prior to our adoption of ASC 606 on May 1, 2018: Three Months Ended October 31, Six Months Ended October 31, 2018 2017 2018 2017 Manufacturing revenue $ 7,243 $ 11,437 $ 17,543 $ 36,236 Process development revenue 2,935 1,345 5,224 3,623 Total contract manufacturing revenue $ 10,178 $ 12,782 $ 22,767 $ 39,859 Contract balances The timing of revenue recognition, billings and cash collections results in billed trade receivables, contract assets (unbilled receivables), and contract liabilities (customer deposits and deferred revenue). Contract assets are recorded when our right to consideration is conditioned on something other than the passage of time. Contract assets are reclassified to trade receivables on the balance sheet when our rights become unconditional. Contract liabilities represent customer deposits and deferred revenue billed and/or received in advance of our fulfillment of performance obligations. Contract liabilities will convert to contract manufacturing revenue as we perform our obligations under the contract. We recognized contract manufacturing revenue of $3,063 and $10,025, respectively, during the three and six months ended October 31, 2018 for which the contract liability was recorded in the prior year. Practical expedients and contract costs We apply the practical expedient available under ASC 606 that permits us not to disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. In addition, we currently do not have any unsatisfied performance obligations for contracts greater than one year. Costs incurred to obtain or fulfill a contract are not material. These costs are generally employee sales commissions, which are expensed when incurred and included in selling, general and administrative expense in the accompanying condensed consolidated statements of operations and comprehensive loss. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all short-term investments readily convertible to cash with an initial maturity of three months or less to be cash equivalents. |
Restricted Cash | Restricted Cash Under the terms of three separate operating leases related to our facilities, we are required to maintain, as collateral, letters of credit during the terms of such leases. At October 31, 2018 and April 30, 2018, restricted cash of $1,150 was pledged as collateral under these letters of credit. |
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, which indicate that their carrying value may not be recoverable. Long-lived assets are reported at the lower of carrying amount or fair value less cost to sell. For the six months ended October 31, 2018 and 2017, there were no indicators of impairment of the value of our long-lived assets. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance prioritizes the inputs used in measuring fair value into the following hierarchy: · Level 1 – Observable inputs, such as unadjusted quoted prices in active markets for identical assets or liabilities. · Level 2 – Observable inputs other than quoted prices included in Level 1, such as assets or liabilities whose values are based on quoted market prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. · Level 3 – Unobservable inputs that are supported by little or no market activity and significant to the overall fair value measurement of the assets or liabilities; therefore, requiring the company to develop its own valuation techniques and assumptions. As of October 31, 2018 and April 30, 2018, we do not have any Level 2 or Level 3 financial assets or liabilities and our cash equivalents, which are primarily invested in money market funds with one major commercial bank, are carried at fair value based on quoted market prices for identical securities (Level 1 input). In addition, there were no transfers between any Levels of the fair value hierarchy during the three and six months ended October 31, 2018 and 2017. |
Stock-based Compensation | Stock-based Compensation We account for stock options, restricted stock rights and other stock-based awards granted under our equity compensation plans in accordance with the authoritative guidance for stock-based compensation. The estimated fair value of stock options granted to employees in exchange for services is measured at the grant date, using a fair value based method, such as a Black-Scholes option valuation model, and is recognized as expense on a straight-line basis over the requisite service periods. In addition, the fair value of restricted stock rights is measured at the grant date based on the closing market price of our common stock on the date of grant, and is recognized as expense on a straight-line basis over the period of vesting. Forfeitures are recognized as a reduction of stock-based compensation expense as they occur. As of October 31, 2018, there were no outstanding stock-based awards with market or performance conditions. |
Income Taxes | 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. As a result of our cumulative losses, management has concluded that a full valuation allowance against our net deferred tax assets is appropriate. The income tax benefit recognized in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss during the three and six months ended October 31, 2018 resulted from the “Intraperiod Tax Allocation” rules under ASC 740: Income Taxes In December 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted. The Tax Act includes a number of changes to existing U.S. tax laws that impact us, most notably a reduction of the U.S. corporate income tax rate from 35 percent to 21 percent for tax years, effective January 1, 2018. We performed a review of the Tax Act for the fiscal year ended April 30, 2018, and based on the information available at that time, recorded certain provisional amounts related to the revaluation of our deferred tax assets and liabilities, which were fully offset by a valuation allowance. In December 2017, the SEC issued interpretive guidance under Staff Accounting Bulletin No. 118 to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. As discussed above, for the fiscal year ended April 30, 2018, we recognized provisional tax impacts related to the revaluation of deferred tax assets and liabilities, which amounts were fully offset by a valuation allowance. The ultimate impact may differ from these provisional amounts, due to among other things, additional analysis, changes in interpretations and assumptions we have made, additional regulatory guidance that may be issued, and actions we may take as a result of the Tax Act. The accounting for these provisions is expected to be complete when our 2017 U.S. corporate income tax return is filed in the first quarter of calendar year 2019. |
Adoption of Other Recent Accounting Pronouncements | Adoption of Other Recent Accounting Pronouncements In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, |
New Accounting Standards Not Yet Adopted | New Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new standard requires lessees to recognize right-of-use assets and lease liabilities on its balance sheet for all leases with lease terms greater than 12 months and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, which will be our fiscal year 2020 beginning May 1, 2019. Early adoption is permitted. We are currently in the process of evaluating the impact of adoption of ASU 2016-02 on our condensed consolidated financial statements and related disclosures. |
2. SUMMARY OF SIGNIFICANT ACC_3
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICY (Tables) | 6 Months Ended |
Oct. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of cumulative effect of the adoption of ASC 606 | As Reported April 30, 2018 ASC 606 Balance at May 1, 2018 Contract assets $ – $ 2,888 $ 2,888 Inventories 16,129 (7,871 ) 8,258 Contract liabilities 27,935 (7,913 ) 20,022 Other current liabilities 905 191 1,096 Accumulated deficit (559,129 ) 2,739 (556,390 ) The following table summarizes the effect of the adoption of ASC 606 on our unaudited condensed consolidated balance sheet at October 31, 2018: As Reported Effect of Change Higher/(Lower) Balance Contract assets $ 5,092 $ 5,092 $ – Inventories 9,736 (16,244 ) 25,980 Contract liabilities 17,307 (17,506 ) 34,813 Three Months Ended October 31, 2018 As Reported Effect of Change Higher/(Lower) Balance Without Adoption of ASC 606 Contract manufacturing revenue $ 10,178 $ 1,215 $ 8,963 Cost of contract manufacturing 9,844 (79 ) 9,923 Gross profit (loss) 334 1,294 (960 ) Operating loss (2,482 ) 1,294 (3,776 ) Loss from continuing operations (2,190 ) 1,294 (3,484 ) Six Months Ended October 31, 2018 As Reported Effect of Change Higher/(Lower) Balance Contract manufacturing revenue $ 22,767 $ 11,831 $ 10,936 Cost of contract manufacturing 21,241 7,905 13,336 Gross profit (loss) 1,526 3,926 (2,400 ) Operating loss (4,505 ) 3,926 (8,431 ) Loss from continuing operations (4,151 ) 3,926 (8,077 ) |
Schedule of contract manufacturing revenue | Three Months Ended October 31, Six Months Ended October 31, 2018 2017 2018 2017 Manufacturing revenue $ 7,243 $ 11,437 $ 17,543 $ 36,236 Process development revenue 2,935 1,345 5,224 3,623 Total contract manufacturing revenue $ 10,178 $ 12,782 $ 22,767 $ 39,859 |
3. TRADE AND OTHER RECEIVABLES
3. TRADE AND OTHER RECEIVABLES (Tables) | 6 Months Ended |
Oct. 31, 2018 | |
Receivables [Abstract] | |
Schedule of trade and other receivables | October 31, 2018 April 30, 2018 Trade receivables $ 4,183 $ 3,539 Other receivables 14 215 Total trade and other receivables $ 4,197 $ 3,754 |
4. INVENTORIES (Tables)
4. INVENTORIES (Tables) | 6 Months Ended |
Oct. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | October 31, 2018 April 30, 2018 Raw materials $ 9,648 $ 8,165 Work-in-process 88 7,964 Total inventories $ 9,736 $ 16,129 |
5. PROPERTY AND EQUIPMENT (Tabl
5. PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Oct. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | October 31, 2018 April 30, 2018 Leasehold improvements $ 20,738 $ 20,686 Laboratory equipment 12,380 10,258 Furniture, fixtures, office equipment and software 5,159 4,597 Construction-in-progress 1,644 3,310 Total property and equipment 39,921 38,851 Less accumulated depreciation and amortization (13,642 ) (12,372 ) Total property and equipment, net $ 26,279 $ 26,479 |
6. CAPITAL LEASE OBLIGATION (Ta
6. CAPITAL LEASE OBLIGATION (Tables) | 6 Months Ended |
Oct. 31, 2018 | |
Leases [Abstract] | |
Minimum future lease payments under the capital lease | Fiscal Year ending April 30,: 2019 (remainder of fiscal year) $ – 2020 85 2021 97 Total minimum lease payments 182 Amount representing interest (11 ) Net present value minimum lease payments 171 Less current portion included in other current liabilities (78 ) Long-term portion included in capital lease obligation, less current portion $ 93 |
7. STOCKHOLDERS' EQUITY (Tables
7. STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Oct. 31, 2018 | |
Equity [Abstract] | |
Dividend Activity Table | Declaration Date Record Date Payment Date Dividends Paid Dividend Per Share 6/6/2018 6/18/2018 7/2/2018 $ 1,081,000 $ 0.65625 9/5/2018 9/17/2018 10/1/2018 $ 1,081,000 $ 0.65625 |
8. EQUITY COMPENSATION PLANS (T
8. EQUITY COMPENSATION PLANS (Tables) | 6 Months Ended |
Oct. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option transaction activity | Stock Options Shares Weighted Average Exercisable Price Outstanding, May 1, 2018 3,597,738 $ 8.74 Granted 439,647 $ 5.05 Exercised (334,556 ) $ 3.47 Canceled or expired (679,366 ) $ 11.26 Outstanding, October 31, 2018 3,023,463 $ 8.22 |
Schedule of restricted stock right transaction activity | Restricted Stock Rights Shares Weighted Average Grant Date Fair Value Outstanding, May 1, 2018 – $ – Granted 128,050 3.62 Vested – – Forfeited (4,800 ) 3.62 Outstanding, October 31, 2018 123,250 $ 3.62 |
Schedule of stock-based compensation expense | Three Months Ended October 31, Six Months Ended October 31, 2018 2017 2018 2017 Cost of contract manufacturing $ 85 $ 138 $ 170 $ 138 Selling, general and administrative 240 125 452 330 Discontinued operations – 46 – 326 Total $ 325 $ 309 $ 622 $ 794 Share-based compensation from: Stock options $ 275 $ 287 $ 529 $ 696 Restricted stock rights 27 – 42 – ESPP 23 22 51 98 Total $ 325 $ 309 $ 622 $ 794 |
9. NET LOSS PER COMMON SHARE (T
9. NET LOSS PER COMMON SHARE (Tables) | 6 Months Ended |
Oct. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of income tax per share | Three Months Ended October 31, Six Months Ended October 31, 2018 2017 2018 2017 Stock Options 234,763 31,877 185,996 69,065 RSRs 55,963 – 30,645 – ESPP 16,401 – 9,090 133 Total 307,127 31,877 225,731 69,198 |
Schedule of antidilutive shares | Three Months Ended October 31, Six Months Ended October 31, 2018 2017 2018 2017 Stock Options 2,238,986 3,600,478 2,599,877 3,608,917 ESPP – 43,332 – – Warrants 12,306 39,040 25,673 39,040 Series E Preferred Stock 1,978,783 1,978,783 1,978,783 1,978,783 Total 4,230,075 5,661,633 4,604,333 5,626,740 |
11. SALE OF RESEARCH AND DEVE_2
11. SALE OF RESEARCH AND DEVELOPMENT ASSETS (Tables) | 6 Months Ended |
Oct. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations summary | Three Months Ended October 31, Six Months Ended October 31, 2018 2017 2018 2017 Operating expenses: Research and development $ – $ 3,650 $ – $ 7,216 Selling, general and administrative – 343 – 782 Restructuring charges – 330 – 330 Total operating expenses $ – $ 4,323 $ – $ 8,328 Gain on sale of research and development assets before income taxes $ 1,000 – $ 1,000 – Income tax expense (261 ) – (261 ) – Income (loss) from discontinued operations, net of tax $ 739 $ (4,323 ) $ 739 $ (8,328 ) The following table summarizes the assets and liabilities of discontinued operations as of October 31, 2018 and April 30, 2018: October 31, 2018 April 30, 2018 Assets: Other receivables $ – $ 5,000 Total assets of discontinued operations $ – $ 5,000 Liabilities: Accounts payable $ – $ 32 Accrued clinical trial and related fees 117 3,613 Accrued payroll and related costs 174 614 Other liabilities 125 291 Total liabilities of discontinued operations $ 416 $ 4,550 |
1. DESCRIPTION OF COMPANY AND_2
1. DESCRIPTION OF COMPANY AND BASIS OF PRESENTATION (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Cash and cash equivalents | $ 32,694 | $ 27,727 | $ 32,694 | $ 27,727 | $ 42,265 | $ 46,799 |
RestructuringCharges | 0 | 1,258 | 0 | 1,258 | ||
Segment Discontinued Operations [Member] | ||||||
RestructuringCharges | $ 0 | $ 330 | 0 | $ 330 | ||
Segment Discontinued Operations [Member] | Research and Development Expense [Member] | ||||||
RestructuringCharges | 330 | |||||
SegmentContinuingOperationsMember | Contract Manufacturing Services [Member] | ||||||
RestructuringCharges | $ 1,258 |
2. SUMMARY OF SIGNIFICANT ACC_4
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Impact on Balance sheet ) - USD ($) $ in Thousands | Oct. 31, 2018 | May 02, 2018 | Apr. 30, 2018 |
Contract assets | $ 5,092 | $ 2,888 | $ 0 |
Inventories | 9,736 | 8,258 | 16,129 |
Contract Liabilities | 17,307 | 20,022 | 27,935 |
Other current liabilities | 433 | 1,096 | 905 |
Accumulated deficit | (559,802) | $ (556,390) | (559,129) |
Balance Without Adoption of ASC 606 [Member] | |||
Contract assets | 0 | ||
Inventories | 25,980 | ||
Contract Liabilities | 34,813 | ||
ASC 606 Transition Adjustment [Member] | |||
Contract assets | 2,888 | ||
Inventories | (7,871) | ||
Contract Liabilities | (7,913) | ||
Other current liabilities | 191 | ||
Accumulated deficit | $ 2,739 | ||
Effect of Change [Member] | |||
Contract assets | 5,092 | ||
Inventories | (16,244) | ||
Contract Liabilities | $ (17,506) |
2. SUMMARY OF SIGNIFICANT ACC_5
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Impact on statement of operations and comprehensive loss ) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | |
Contract manufacturing revenue | $ 10,178 | $ 12,782 | $ 22,767 | $ 39,859 |
Cost of contract manufacturing | 9,844 | 16,242 | 21,241 | 36,690 |
Gross profit (loss) | 334 | (3,460) | 1,526 | 3,169 |
Operating loss | (2,482) | (8,314) | (4,505) | (5,538) |
Loss from continuing operations | (2,190) | $ (8,301) | (4,151) | $ (5,501) |
Balance Without Adoption of ASC 606 [Member] | ||||
Contract manufacturing revenue | 8,963 | 10,936 | ||
Cost of contract manufacturing | 9,923 | 13,336 | ||
Gross profit (loss) | (960) | (2,400) | ||
Operating loss | (3,776) | (8,431) | ||
Loss from continuing operations | (3,484) | (8,077) | ||
Effect of Change [Member] | ||||
Contract manufacturing revenue | 1,215 | 11,831 | ||
Cost of contract manufacturing | (79) | 7,905 | ||
Gross profit (loss) | 1,294 | 3,926 | ||
Operating loss | 1,294 | 3,926 | ||
Loss from continuing operations | $ 1,294 | $ 3,926 |
2. SUMMARY OF SIGNIFICANT ACC_6
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Contract manufacturing revenue ) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | |
Total contract manufacturing revenue | $ 10,178 | $ 12,782 | $ 22,767 | $ 39,859 |
Manufacturing Revenue [Member] | ||||
Total contract manufacturing revenue | 7,243 | 11,437 | 17,543 | 36,236 |
Process Development Revenue [Member] | ||||
Total contract manufacturing revenue | $ 2,935 | $ 1,345 | $ 5,224 | $ 3,623 |
2. SUMMARY OF SIGNIFICANT ACC_7
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | |
Revenue | $ 10,178 | $ 12,782 | $ 22,767 | $ 39,859 | ||
Restricted cash | 1,150 | 1,150 | 1,150 | 1,150 | $ 1,150 | $ 1,150 |
Asset impairment charges | 0 | 0 | ||||
Manufacturing Revenue [Member] | ||||||
Revenue | 7,243 | $ 11,437 | 17,543 | $ 36,236 | ||
Manufacturing Revenue [Member] | Prior Year [Member] | ||||||
Revenue | $ 3,063 | $ 10,025 |
3. TRADE AND OTHER RECEIVABLE_2
3. TRADE AND OTHER RECEIVABLES (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Apr. 30, 2018 |
Receivables [Abstract] | ||
Trade receivables | $ 4,183 | $ 3,539 |
Other receivables | 14 | 215 |
Total trade and other receivables | $ 4,197 | $ 3,754 |
3. TRADE AND OTHER RECEIVABLE_3
3. TRADE AND OTHER RECEIVABLES (Details Narrative) - USD ($) $ in Thousands | Oct. 31, 2018 | Apr. 30, 2018 |
Receivables [Abstract] | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
4. INVENTORIES (Details)
4. INVENTORIES (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | May 02, 2018 | Apr. 30, 2018 |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 9,648 | $ 8,165 | |
Work-in-process | 88 | 7,964 | |
Total inventories | $ 9,736 | $ 8,258 | $ 16,129 |
4. INVENTORIES (Details Narrati
4. INVENTORIES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | |
Cost of contract manufacturing | $ 9,844 | $ 16,242 | $ 21,241 | $ 36,690 |
Idle Capacity Costs [Member] | ||||
Cost of contract manufacturing | $ 2,923 | $ 4,652 | $ 4,938 | $ 5,838 |
5. PROPERTY AND EQUIPMENT (Deta
5. PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Apr. 30, 2018 |
Property, Plant and Equipment [Abstract] | ||
Leasehold improvements | $ 20,738 | $ 20,686 |
Laboratory equipment | 12,380 | 10,258 |
Furniture, fixtures, office equipment and software | 5,159 | 4,597 |
Construction-in-progress | 1,644 | 3,310 |
Total property and equipment | 39,921 | 38,851 |
Less accumulated depreciation and amortization | (13,642) | (12,372) |
Total property and equipment, net | $ 26,279 | $ 26,479 |
5. PROPERTY AND EQUIPMENT (De_2
5. PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization | $ 683 | $ 658 | $ 1,325 | $ 1,300 |
6. CAPITAL LEASE OBLIGATION (De
6. CAPITAL LEASE OBLIGATION (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Apr. 30, 2018 |
Capital Lease Obligations | ||
2019 (remainder of fiscal year) | $ 0 | |
2,020 | 85 | |
2,021 | 97 | |
Total minimum lease payments | 182 | |
Amount representing interest | (11) | |
Net present value minimum lease payments | 171 | |
Less current portion included in other current liabilities | (78) | |
Long-term portion included in capital lease obligation, less current portion | $ 93 | $ 0 |
6. CAPITAL LEASE OBLIGATION (_2
6. CAPITAL LEASE OBLIGATION (Details Narrative) $ in Thousands | Oct. 31, 2018USD ($) |
Leases [Abstract] | |
Interest rate | 4.19% |
Gross value of software purchase | $ 245 |
Accumulated amortization | $ 34 |
7. STOCKHOLDERS' EQUITY (Detail
7. STOCKHOLDERS' EQUITY (Details) - Series E Preferred Stock [Member] | 6 Months Ended |
Oct. 31, 2018USD ($)$ / shares | |
Qtr 1, FY 2019 [Member] | |
Declaration Date | Jun. 6, 2018 |
Record date | Jun. 18, 2018 |
Payment date | Jul. 2, 2018 |
Total dividends paid | $ | $ 1,081,000 |
Dividend per share | $ / shares | $ 0.65625 |
Qtr 2, FY 2019 [Member] | |
Declaration Date | Sep. 5, 2018 |
Record date | Sep. 17, 2018 |
Payment date | Oct. 1, 2018 |
Total dividends paid | $ | $ 1,081,000 |
Dividend per share | $ / shares | $ 0.65625 |
7. STOCKHOLDERS' EQUITY (Deta_2
7. STOCKHOLDERS' EQUITY (Details Narrative) - $ / shares | 6 Months Ended | |
Oct. 31, 2018 | Apr. 30, 2018 | |
Common stock authorized | 150,000,000 | 500,000,000 |
Common stock outstanding | 56,063,488 | 55,689,222 |
Stock Incentive Plans [Member] | ||
Shares available for issuance | 7,313,424 | |
ESPP [Member] | ||
Shares available for issuance | 1,231,699 | |
Series E Preferred Stock [Member] | ||
Shares issuable upon conversion | 6,826,435 | |
Liquidation preference price per share | $ 25 | |
Conversion price per share | $ 21 | |
If converted, Series E Preferred stock holders would receive shares of common stock. Common shares to be issued | 1,961,619 | |
Each outstanding share that could be converted into common shares | 4.18 |
8. EQUITY COMPENSATION PLANS (D
8. EQUITY COMPENSATION PLANS (Details - Option activity) - Options [Member] | 6 Months Ended |
Oct. 31, 2018$ / sharesshares | |
Number of Options | |
Number of Options Outstanding, Beginning | shares | 3,597,738 |
Number of Options Granted | shares | 439,647 |
Number of Options Exercised | shares | (334,556) |
Number of Options Canceled or Expired | shares | (679,366) |
Number of Options Outstanding, Ending | shares | 3,023,463 |
Weighted Average Exercise Price | |
Weighted Average Exercise Price Outstanding, Beginning | $ / shares | $ 8.74 |
Weighted Average Exercise Price Granted | $ / shares | 5.05 |
Weighted Average Exercise Price Exercised | $ / shares | 3.47 |
Weighted Average Exercise Price Canceled or Expired | $ / shares | 11.26 |
Weighted Average Exercise Price Outstanding, Ending | $ / shares | $ 8.22 |
8. EQUITY COMPENSATION PLANS _2
8. EQUITY COMPENSATION PLANS (Details - Restricted Stock Rights) - Restricted Stock Rights [Member] | 6 Months Ended |
Oct. 31, 2018$ / sharesshares | |
Number of Restricted Stock Rights | |
Number of Restricted Stock Rights Outstanding, Beginning | shares | 0 |
Granted | shares | 128,050 |
Vested | shares | 0 |
Forfeited | shares | (4,800) |
Number of Restricted Stock Rights Outstanding, Ending | shares | 123,250 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Date Fair Value Outstanding, Beginning | $ / shares | |
Granted | $ / shares | 3.62 |
Vested | $ / shares | |
Forfeited | $ / shares | 3.62 |
Weighted Average Grant Date Fair Value Outstanding, Ending | $ / shares | $ 3.62 |
8. EQUITY COMPENSATION PLANS _3
8. EQUITY COMPENSATION PLANS (Details - Share based compensation) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | |
Stock-based compensation | $ 325 | $ 309 | $ 622 | $ 794 |
Cost of contract manufacturing [Member] | ||||
Stock-based compensation | 85 | 138 | 170 | 138 |
Selling, general and administrative [Member] | ||||
Stock-based compensation | 240 | 125 | 452 | 330 |
Discontinued Operations [Member] | ||||
Stock-based compensation | 0 | 46 | 0 | 326 |
Options [Member] | ||||
Stock-based compensation | 275 | 287 | 529 | 696 |
Restricted stock rights [Member] | ||||
Stock-based compensation | 27 | 0 | 42 | 0 |
ESPP [Member] | ||||
Stock-based compensation | $ 23 | $ 22 | $ 51 | $ 98 |
8. EQUITY COMPENSATION PLANS _4
8. EQUITY COMPENSATION PLANS (Details Narrative) $ / shares in Units, $ in Thousands | 6 Months Ended |
Oct. 31, 2018USD ($)$ / sharesshares | |
Stock Incentive Plans [Member] | |
Shares available for grant | 7,313,424 |
Options and Restricted Stock Rights [Member] | |
Shares available for grant | 3,146,713 |
Future grants of share-based awards [Member] | |
Shares available for grant | 4,166,711 |
Restricted stock rights [Member] | |
Restricted Stock Rights granted | 128,050 |
Restricted stock rights [Member] | Employees [Member] | |
Restricted Stock Rights granted | 128,050 |
Aggregate grant date fair value | $ | $ 464 |
ESPP [Member] | |
Shares authorized under plan | 2,142,857 |
Shares available for grant | 1,231,699 |
Common stock purchased under plan | 39,710 |
Stock purchase price | $ / shares | $ 2.87 |
Non-Vested Employee Stock Options [Member] | |
Unrecognized compensation cost | $ | $ 3,118 |
Unrecognized cost amortization period | 2 years 11 months 5 days |
Non-Vested Restricted Stock Rights [Member] | |
Unrecognized compensation cost | $ | $ 404 |
Unrecognized cost amortization period | 3 years 7 months 13 days |
9. NET LOSS PER COMMON SHARE (D
9. NET LOSS PER COMMON SHARE (Details - Antidilutive shares) - shares | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | |
Options [Member] | ||||
Antidilutive shares excluded from calculation of weighted average diluted shares outstanding | 234,763 | 31,877 | 185,996 | 69,065 |
Restricted stock rights [Member] | ||||
Antidilutive shares excluded from calculation of weighted average diluted shares outstanding | 55,963 | 0 | 30,645 | 0 |
ESPP [Member] | ||||
Antidilutive shares excluded from calculation of weighted average diluted shares outstanding | 16,401 | 0 | 9,090 | 133 |
Options, RSRs and ESPP [Member] | ||||
Antidilutive shares excluded from calculation of weighted average diluted shares outstanding | 307,127 | 31,877 | 225,731 | 69,198 |
9. NET LOSS PER COMMON SHARE _2
9. NET LOSS PER COMMON SHARE (Details - Antidilutive shares, If-Converted) - shares | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | |
ESPP [Member] | ||||
Antidilutive shares excluded from calculation of weighted average diluted shares outstanding | 16,401 | 0 | 9,090 | 133 |
If-Converted Method [Member] | Stock Options [Member] | ||||
Antidilutive shares excluded from calculation of weighted average diluted shares outstanding | 2,238,986 | 3,600,478 | 2,599,877 | 3,608,917 |
If-Converted Method [Member] | ESPP [Member] | ||||
Antidilutive shares excluded from calculation of weighted average diluted shares outstanding | 0 | 43,332 | 0 | 0 |
If-Converted Method [Member] | Warrants [Member] | ||||
Antidilutive shares excluded from calculation of weighted average diluted shares outstanding | 12,306 | 39,040 | 25,673 | 39,040 |
If-Converted Method [Member] | Series E Preferred Stock [Member] | ||||
Antidilutive shares excluded from calculation of weighted average diluted shares outstanding | 1,978,783 | 1,978,783 | 1,978,783 | 1,978,783 |
If-Converted Method [Member] | Options, ESPP, Warrants and Series E Preferred Stock [Member] | ||||
Antidilutive shares excluded from calculation of weighted average diluted shares outstanding | 4,230,075 | 5,661,633 | 4,604,333 | 5,626,740 |
10. WARRANTS (Details Narrative
10. WARRANTS (Details Narrative) | 6 Months Ended |
Oct. 31, 2018shares | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants expired | 39,040 |
Warrants outstanding | 0 |
11. SALE OF RESEARCH AND DEVE_3
11. SALE OF RESEARCH AND DEVELOPMENT ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | |
Operating expenses: | ||||
Selling, general and administrative | $ 2,816 | $ 3,596 | $ 6,031 | $ 7,449 |
Restructuring charges | 0 | 1,258 | 0 | 1,258 |
Total operating expenses | 2,816 | 4,854 | 6,031 | 8,707 |
Gain on sale of research and development assets before income taxes | 1,000 | 0 | ||
Income tax expense | 173 | 0 | 173 | 0 |
Income (loss) from discontinued operations, net of tax | (739) | 4,323 | (739) | 8,328 |
Discontinued Operations [Member] | ||||
Operating expenses: | ||||
Research and development | 0 | 3,650 | 0 | 7,216 |
Selling, general and administrative | 0 | 343 | 0 | 782 |
Restructuring charges | 0 | 330 | 0 | 330 |
Total operating expenses | 0 | 4,323 | 0 | 8,328 |
Gain on sale of research and development assets before income taxes | 1,000 | 0 | 1,000 | 0 |
Income tax expense | (261) | 0 | (261) | 0 |
Income (loss) from discontinued operations, net of tax | $ 739 | $ (4,323) | $ 739 | $ (8,328) |
11. SALE OF RESEARCH AND DEVE_4
11. SALE OF RESEARCH AND DEVELOPMENT ASSETS (Details - Balance Sheet) - USD ($) $ in Thousands | Oct. 31, 2018 | Apr. 30, 2018 |
Liabilities: | ||
Accrued payroll and related costs | $ 1,829 | $ 2,564 |
Discontinued Operations [Member] | ||
Assets: | ||
Other receivables | 0 | 5,000 |
Total assets of discontinued operations | 0 | 5,000 |
Liabilities: | ||
Accounts payable | 0 | 32 |
Accrued clinical trial and related fees | 117 | 3,613 |
Accrued payroll and related costs | 174 | 614 |
Other liabilities | 125 | 291 |
Total liabilities of discontinued operations | $ 416 | $ 4,550 |
11. SALE OF RESEARCH AND DEVE_5
11. SALE OF RESEARCH AND DEVELOPMENT ASSETS (Details Narrative) - Oncologie [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Oct. 31, 2018 | Apr. 30, 2018 | |
Research and development assets [Member] | ||
Proceeds from sale of assets | $ 6,000 | $ 3,000 |
r84 technology [Member] | ||
Proceeds from sale of assets | $ 1,000 |