Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Apr. 30, 2019 | Jun. 14, 2019 | Oct. 31, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | Avid Bioservices, Inc. | ||
Entity Central Index Key | 0000704562 | ||
Document Type | 10-K | ||
Document Period End Date | Apr. 30, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --04-30 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 293,016,000 | ||
Entity Common Stock, Shares Outstanding | 56,137,724 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Emerging Growth Company | false | ||
Small Business | true | ||
Entity Shell Company | false | ||
Interactive Data Current | Yes | ||
Incorporation State Country Name | DE | ||
Entity File Number | 001-32839 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 32,351 | $ 42,265 |
Accounts receivable | 7,374 | 3,754 |
Contract assets | 4,327 | 0 |
Inventories | 6,557 | 16,129 |
Prepaid expenses | 709 | 679 |
Assets of discontinued operations | 0 | 5,000 |
Total current assets | 51,318 | 67,827 |
Property and equipment, net | 25,625 | 26,479 |
Restricted cash | 1,150 | 1,150 |
Other assets | 302 | 304 |
TOTAL ASSETS | 78,395 | 95,760 |
CURRENT LIABILITIES: | ||
Accounts payable | 4,352 | 1,909 |
Accrued payroll and related costs | 3,540 | 2,564 |
Contract liabilities | 14,651 | 27,935 |
Other current liabilities | 619 | 905 |
Liabilities of discontinued operations | 0 | 4,550 |
Total current liabilities | 23,162 | 37,863 |
Deferred rent, less current portion | 2,072 | 2,159 |
Capital lease, less current portion | 93 | 0 |
Commitments and contingencies (Note 8) | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized; 1,647,760 shares issued and outstanding at respective dates | 2 | 2 |
Common stock, $0.001 par value; 150,000,000 shares authorized; 56,135,697 and 55,689,222 shares issued and outstanding at respective dates | 56 | 55 |
Additional paid-in-capital | 613,615 | 614,810 |
Accumulated deficit | (560,605) | (559,129) |
Total stockholders' equity | 53,068 | 55,738 |
Total liabilities and stockholders' equity | $ 78,395 | $ 95,760 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 30, 2019 | 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 | 150,000,000 |
Common stock, shares issued | 56,135,697 | 55,689,222 |
Common stock, shares outstanding | 56,135,697 | 55,689,222 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Income Statement [Abstract] | |||
Revenues | $ 53,603 | $ 53,621 | $ 57,630 |
Cost of revenues | 46,379 | 56,545 | 38,259 |
Gross profit (loss) | 7,224 | (2,924) | 19,371 |
Operating expenses: | |||
Selling, general and administrative | 12,846 | 16,456 | 18,079 |
Restructuring charges | 0 | 1,258 | 0 |
Total operating expenses | 12,846 | 17,714 | 18,079 |
Operating (loss) income | (5,622) | (20,638) | 1,292 |
Interest and other income, net | 282 | 75 | 101 |
(Loss) income from continuing operations before income taxes | (5,340) | (20,563) | 1,393 |
Income tax benefit | 284 | 0 | 0 |
(Loss) income from continuing operations | (5,056) | (20,563) | 1,393 |
Income (loss) from discontinued operations, net of tax | 841 | (1,250) | (29,552) |
Net Loss | (4,215) | (21,813) | (28,159) |
Comprehensive loss | (4,215) | (21,813) | (28,159) |
Series E preferred stock accumulated dividends | (4,686) | (4,686) | (4,640) |
Net loss attributable to common stockholders | $ (8,901) | $ (26,499) | $ (32,799) |
Basic and diluted net (loss) income per common share attributable to common stockholders - Continuing operations | $ (0.17) | $ (0.53) | $ (0.09) |
Basic and diluted net (loss) income per common share attributable to common stockholders - Discontinued operations | 0.01 | (0.03) | (0.79) |
Net loss per share attributable to common stockholders | $ (0.16) | $ (0.56) | $ (0.88) |
Basic and diluted weighted average common shares outstanding | 55,981,060 | 47,063,020 | 37,109,493 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning balance, shares at Apr. 30, 2016 | 1,577,440 | 33,847,213 | |||
Beginning balance, value at Apr. 30, 2016 | $ 2 | $ 34 | $ 559,314 | $ (509,276) | $ 50,074 |
Series E preferred stock issued, net of issuance costs, shares | 70,230 | ||||
Series E preferred stock issued, net of issuance costs, value | 1,576 | 1,576 | |||
Series E preferred stock dividends | (4,279) | (4,279) | |||
Common stock issued, net of issuance costs, shares | 9,887,726 | ||||
Common stock issued, net of issuance costs, value | $ 10 | 30,440 | 30,450 | ||
Common stock issued under Employee Stock Purchase Plan, shares | 270,075 | ||||
Common stock issued under Employee Stock Purchase Plan, value | 526 | 526 | |||
Exercise of stock options, shares | 9,026 | ||||
Exercise of stock options, value | 31 | 31 | |||
Share-based compensation expense | 3,363 | 3,363 | |||
Net loss | (28,159) | (28,159) | |||
Ending balance, shares at Apr. 30, 2017 | 1,647,760 | 44,014,040 | |||
Ending balance, value at Apr. 30, 2017 | $ 2 | $ 44 | 590,971 | (537,435) | 53,582 |
Series E preferred stock dividends | (4,325) | (4,325) | |||
Cumulative-effect adjustment to accumulated deficit pursuant to adoption of ASU | (119) | 119 | |||
Common stock issued, net of issuance costs, shares | 11,345,704 | ||||
Common stock issued, net of issuance costs, value | $ 11 | 25,676 | 25,687 | ||
Common stock issued under Employee Stock Purchase Plan, shares | 88,327 | ||||
Common stock issued under Employee Stock Purchase Plan, value | 317 | 317 | |||
Exercise of stock options, shares | 222,255 | ||||
Exercise of stock options, value | 752 | 752 | |||
Fractional shares issued pursuant to reverse stock split | 18,896 | ||||
Share-based compensation expense | 1,538 | 1,538 | |||
Net loss | (21,813) | (21,813) | |||
Ending balance, shares at Apr. 30, 2018 | 1,647,760 | 55,689,222 | |||
Ending balance, value at Apr. 30, 2018 | $ 2 | $ 55 | 614,810 | (559,129) | 55,738 |
Series E preferred stock dividends | (4,325) | (4,325) | |||
Cumulative-effect adjustment to accumulated deficit pursuant to adoption of ASU | 2,739 | 2,739 | |||
Common stock issued under Employee Stock Purchase Plan, shares | 75,148 | ||||
Common stock issued under Employee Stock Purchase Plan, value | 258 | 258 | |||
Exercise of stock options, shares | 371,327 | ||||
Exercise of stock options, value | $ 1 | 1,277 | 1,278 | ||
Share-based compensation expense | 1,595 | 1,595 | |||
Net loss | (4,215) | (4,215) | |||
Ending balance, shares at Apr. 30, 2019 | 1,647,760 | 56,135,697 | |||
Ending balance, value at Apr. 30, 2019 | $ 2 | $ 56 | $ 613,615 | $ (560,605) | $ 53,068 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Common Stock | ||
Issuance costs | $ 1,780 | $ 827 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (4,215) | $ (21,813) | $ (28,159) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 2,746 | 2,562 | 2,463 |
Stock-based compensation | 1,595 | 1,538 | 3,363 |
Loss on disposal of assets | 127 | 1,692 | 1 |
Gain on sale of research and development assets | (1,000) | (8,000) | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (3,620) | 3,988 | (4,883) |
Contract asssets | (1,439) | 0 | 0 |
Inventories | 1,701 | 16,970 | (16,913) |
Prepaid expenses and other assets | (28) | 153 | 434 |
Accounts payable | 2,125 | (1,271) | (3,804) |
Accrued payroll and related costs | 976 | (2,491) | 372 |
Contract liabilities | (5,371) | (17,582) | 11,275 |
Other accrued expenses and current liabilities | (642) | 1,009 | (407) |
Assets and liabilities of discontinued operations | (4,550) | (2,747) | (2,911) |
Net cash used in operating activities | (11,595) | (25,992) | (39,169) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (1,502) | (3,793) | (3,627) |
Decrease in other assets | 0 | 0 | 568 |
Proceeds from sale of property and equipment | 46 | 0 | 0 |
Proceeds from sale of research and development assets | 6,000 | 3,000 | 0 |
Net cash provided by (used in) investing activities | 4,544 | (793) | (3,059) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of common stock, net of issuance costs | 0 | 25,687 | 30,450 |
Proceeds from issuance of preferred stock, net of issuance costs | 0 | 0 | 1,576 |
Proceeds from issuance of common stock under employee stock purchase plan | 258 | 317 | 526 |
Proceeds from exercise of stock options | 1,278 | 752 | 31 |
Dividends paid on preferred stock | (4,325) | (4,325) | (4,279) |
Principal payments on capital leases | (74) | (180) | (139) |
Net cash (used in) provided by financing activities | (2,863) | 22,251 | 28,165 |
Change in cash, cash equivalents and restricted cash | (9,914) | (4,534) | (14,063) |
Cash, cash equivalents and restricted cash, beginning of period | 43,415 | 47,949 | 62,012 |
Cash, cash equivalents and restricted cash, end of period | 33,501 | 43,415 | 47,949 |
SUPPLEMENTAL INFORMATION: | |||
Interest paid | 11 | 4 | 6 |
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Unpaid purchases of property and equipment | 318 | 180 | 658 |
Property and equipment acquired under capital lease | 245 | 0 | 319 |
Receivable related to the sale of research and development assets | $ 0 | $ 5,000 | $ 0 |
RECONCILIATION OF CASH
RECONCILIATION OF CASH - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 |
Statement of Financial Position [Abstract] | ||||
Cash and cash equivalents, end of period | $ 32,351 | $ 42,265 | $ 46,799 | |
Restricted cash, end of period | 1,150 | 1,150 | 1,150 | |
Cash, cash equivalents and restricted cash, end of period | $ 33,501 | $ 43,415 | $ 47,949 | $ 62,012 |
1. Description of Company and B
1. Description of Company and Basis of Presentation | 12 Months Ended |
Apr. 30, 2019 | |
Organization And Business Description | |
Description of Company and Basis of Presentation | Note 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. Effective January 5, 2018, we changed our name to Avid Bioservices, Inc. from Peregrine Pharmaceuticals, Inc. in connection with our transition to a dedicated CDMO and the discontinuation of our research and development activities. Except where specifically noted or the context otherwise requires, references to “Avid,” “the Company,” “we,” “us,” and “our,” in this Annual Report refer to Avid Bioservices, Inc. and its subsidiaries. Basis of Presentation and Preparation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the accounts of Avid Bioservices, Inc. and its subsidiaries. All intercompany accounts and transactions among the consolidated entities have been eliminated in the consolidated financial statements. The preparation of our financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from these estimates. The financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. At April 30, 2019, we had $32,351 in cash and cash equivalents. Our ability to fund our operations is dependent on the amount of cash on hand and our ability to generate positive cash flow to sustain our current operations. We have expended substantial funds on our contract manufacturing business and, historically, on our legacy research and development of pharmaceutical product candidates. As a result, we have historically experienced losses and negative cash flows from operations since our inception and expect negative cash flows from operations to continue until we can generate sufficient revenue to generate positive cash flow from operations. We plan to fund our operations using our existing cash and cash equivalents and cash generated from services provided under our customer contracts. In the event we are unable to secure sufficient business to support our current operations, we may need to raise additional capital in the future. There can be no assurance that equity financing will be available on acceptable terms or at all. Our ability to raise additional capital in the equity markets to fund our future operations is dependent 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, our financial results and economic and market conditions. If we are unable to fund our continuing operations through these sources 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. Any of these actions could materially harm our business, results of operations, and future prospects. Further, we performed an analysis and concluded that based on our cash and cash equivalents as of April 30, 2019 in conjunction with cash generated from services provided under our customer contracts will provide us with adequate cash on hand to support our operations for at least one year from the date that our consolidated financial statements are issued. Certain prior year amounts related to deferred revenue and customer deposits have been reclassified to contract liabilities to conform to the current period’s presentation. This reclassification had no effect on previously reported net loss. 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, net of tax, in the accompanying consolidated financial statements. 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 Consolidated Balance Sheet at April 30, 2018. For additional information on the discontinuation of our research and development segment, refer to Note 10, “Sale of Research and Development Assets”. Segment Reporting Our business had historically been organized into two reportable operating segments: (i) contract manufacturing services and (ii) research and development. However, as a result of the aforementioned discontinuation of our research and development segment, management has determined that the Company operates in only one operating segment. Accordingly, we reported our financial results for one reportable segment |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Cash and Cash Equivalents We consider all short-term investments readily convertible to cash, without notice or penalty, with an initial maturity of 90 days or less to be cash equivalents. Restricted Cash Under the terms of three separate operating leases related to our facilities, we are required to maintain, as collateral, letters of credit during the terms of such leases (Note 3). At April 30, 2019 and 2018, restricted cash of $1,150 was pledged as collateral under these letters of credit. 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 generally 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 generally represents revenue from non-manufacturing related services associated with the custom development of a manufacturing process and analytical methods for 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 revenue for the fiscal years ended April 30, 2019, 2018 and 2017 by revenue stream. Fiscal Year Ended April 30, 2019 2018 2017 Manufacturing revenue $ 43,432 $ 47,437 $ 52,215 Process development revenue 10,171 6,184 5,415 Total Revenues $ 53,603 $ 53,621 $ 57,630 Revenues for the fiscal years ended April 30, 2018 and 2017 have not been adjusted in accordance with our modified retrospective adoption of Accounting Standards Concepts (“ASC”) 606 Revenue from Contracts with Customers (“ASC 606”) as of May 1, 2018, and continues to be reported under the accounting standards that were in effect prior to our adoption of ASC 606 as further discussed below under the section, “ Accounting Standards Adopted in Fiscal Year 2019 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 convert to revenue as we perform our obligations under the contract. Payment terms can vary by the type of contract manufacturing services offered, however, the term between invoicing and when payment is due is not significant. For certain services, payment prior to satisfaction of a performance obligation can be required, and results in recording a contract liability. During the fiscal year ended April 30, 2019, we recognized revenue of $14,312 for which the contract liability was recorded in the prior year. 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 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 consolidated statements of operations and comprehensive loss. Accounts Receivable Accounts receivable generally represent trade amounts billed for contract manufacturing services and are recorded at the invoiced amount net of an allowance for doubtful accounts, if necessary. Accounts receivable consisted of the following: April 30, 2019 2018 Trade receivables $ 7,374 $ 3,539 Other receivables – 215 Total Accounts receivable $ 7,374 $ 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 April 30, 2019 and 2018, we determined no allowance for doubtful accounts was necessary. Concentrations of Credit Risk and Customer Base Financial instruments that potentially subject us to a significant concentration of credit risk consist of cash and cash equivalents, restricted cash, trade receivables and contract assets. We maintain our cash and restricted cash balances primarily with one major commercial bank and our deposits held with the bank exceed the amount of government insurance limits provided on our deposits. We are exposed to credit risk in the event of default by the major commercial bank holding our cash and restricted cash balances to the extent of the cash and restricted cash amounts recorded on the accompanying consolidated balance sheet. Our trade receivables from amounts billed for contract manufacturing services have historically been derived from a small customer base. Most contracts require up-front payments and installment payments during the service period. We perform periodic evaluations of the financial condition of our customers and generally do not require collateral, but we can terminate any contract if a material default occurs. At April 30, 2019 and 2018, approximately 95% and 93%, respectively, of our trade receivables were due from six customers. Our contract assets are reclassified to trade receivables when our rights to consideration become unconditional. At April 30, 2019 approximately 87% of our contract assets were attributable to eight customers. Our revenues have historically been derived from a small customer base. Historically, these customers have not entered into long-term contracts because their need for drug supply depends on a variety of factors, including a product’s stage of development, the timing of regulatory filings and approvals, the product needs of their collaborators, if applicable, their financial resources and the market demand with respect to a commercial product. The percentages below represent revenues derived from each customer as a percentage of total revenues during the fiscal years ended April 30, 2019, 2018 and 2017: Customer Geographic Location 2019 2018 2017 Halozyme Therapeutics, Inc. U.S. 30% 55% 58% ADC Therapeutics America Inc. U.S. 21 9 – Coherus BioSciences, Inc. U.S. 13 22 26 Other customers U.S./non-U.S. 36 14 16 Total 100% 100% 100% We attribute revenue to the individual countries where the customer is headquartered. Revenues derived from U.S. based customers were 95%, 99% and 100% for the fiscal years ended April 30, 2019, 2018 and 2017, respectively. Inventories Inventories are valued at the lower of cost or net realizable value, determined by the first-in, first-out method. Subsequent to the adoption of ASC 606 (Note 2), manufacturing costs associated with work-in-process inventory (comprised of raw materials, direct labor and overhead costs associated with in-process manufacturing services) are recorded to cost of revenues in the accompanying consolidated financial statements as incurred. Overhead costs allocated to work-in-process inventory are based on the normal capacity of our production facilities and do not include costs from under absorption of overhead costs or idle capacity, which are expensed directly to cost of revenues in the period incurred. Inventories consist of the following: April 30, 2019 2018 Raw materials $ 6,557 $ 8,165 Work-in-process – 7,964 Total Inventories $ 6,557 $ 16,129 We periodically review raw materials inventory for potential impairment and adjust inventory to its net realizable value based on the estimate of future use and reduce the carrying value of inventory as determined necessary. Property and Equipment Property and equipment is recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related asset, generally ranging from three to ten years. Amortization of leasehold improvements is calculated using the straight-line method over the shorter of the estimated useful life of the asset or the remaining lease term. Construction-in-progress, which represents direct costs related to the construction of various equipment and leasehold improvements primarily associated with our manufacturing facilities, are not depreciated until the asset is completed and placed into service. No interest was incurred or capitalized as construction-in-progress as of April 30, 2019 and 2018. All of our property and equipment are located in the U.S. Property and equipment consist of the following: April 30, 2019 2018 Leasehold improvements $ 20,574 $ 20,686 Laboratory and manufacturing equipment 12,858 10,258 Computer equipment and software 4,644 4,087 Furniture, fixtures and office equipment 528 510 Construction-in-progress 1,590 3,310 Total Property and equipment, gross 40,194 38,851 Less: Accumulated depreciation and amortization (14,569 ) (12,372 ) Total Property and equipment, net $ 25,625 $ 26,479 Depreciation and amortization expense for the years ended April 30, 2019, 2018 and 2017 was $2,746, $2,562 and $2,463, respectively. Impairment Long-lived assets are reviewed for impairment in accordance with authoritative guidance for impairment or disposal of long-lived assets. Long-lived assets are reviewed for events or changes in circumstances that indicate that their carrying value may not be recoverable. Long-lived assets are reported at the lower of carrying amount or fair value less cost to sell. For the fiscal years ended April 30, 2019 and 2018, there were no indicators of impairment of the value of our long-lived assets. Fair Value of Financial Instruments The carrying amounts in the accompanying Consolidated Balance Sheets for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to their short-term maturities. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance prioritizes the inputs used in measuring fair value into the following hierarchy: · Level 1 – Observable inputs, such as unadjusted quoted prices in active markets for identical assets or liabilities. · Level 2 – Observable inputs other than quoted prices included in Level 1, such as assets or liabilities whose values are based on quoted market prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. · Level 3 – Unobservable inputs that are supported by little or no market activity and significant to the overall fair value measurement of the assets or liabilities; therefore, requiring the company to develop its own valuation techniques and assumptions. As of April 30, 2019 and 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 fiscal years ended April 30, 2019 and 2018. Deferred Rent Rent expense is recorded on a straight-line basis over the initial term of our operating lease agreements and the difference between rent expense and the amounts paid is recorded as a deferred rent liability. Incentives granted under our operating leases, including tenant improvements and landlord-funded lease incentives, are recorded as a deferred rent liability, which is amortized as a reduction to rent expense over the term of the operating lease (Note 3). Restructuring Charges 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 and completed during the fiscal year ended April 30, 2018 (Note 9). One-time termination benefits were expensed at the date we notified the employee, unless the employee was required to provide future service, in which case the benefits were expensed ratably over the future service period. Stock-Based Compensation We account for stock options, restricted stock units and other stock-based awards granted under our equity compensation plans in accordance with the authoritative guidance for stock-based compensation. The estimated fair value of stock options granted to employees in exchange for services is measured at the grant date, using a fair value based method, such as a Black-Scholes option valuation model, and is recognized as expense on a straight-line basis over the requisite service periods. The fair value of restricted stock units is measured at the grant date based on the closing market price of our common stock on the date of grant, and is recognized as expense on a straight-line basis over the period of vesting. Forfeitures are recognized as a reduction of stock-based compensation expense as they occur. As of April 30, 2019, there were no outstanding stock-based awards with market or performance conditions. Income Taxes We utilize the liability method of accounting for income taxes in accordance with ASC 740: Income Taxes The income tax benefit recognized in the accompanying Consolidated Statements of Operations and Comprehensive Loss for the year ended April 30, 2019 resulted from the “Intraperiod Tax Allocation” rules under ASC 740, which requires the allocation of an entity’s total annual income tax provision among continuing operations and, in our case, discontinued operations. Accordingly, a tax benefit was recorded in continuing operations with an offsetting tax expense recorded in discontinued operations (Note 10). Comprehensive Loss Comprehensive loss is the change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive loss is equal to our net loss for all periods presented. Accounting Standards Adopted in Fiscal Year 2019 In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (codified as ASC 606), which, along with subsequent amendments issued after May 2014, replaced substantially all the relevant U.S. GAAP revenue recognition guidance. ASC 606, as amended, is based on the principle that revenue is recognized to depict the contractual transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services utilizing a new five-step revenue recognition model, which steps include (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. On May 1, 2018, we adopted ASC 606, as amended, to all contracts that had not been completed as of May 1, 2018 using the modified retrospective method. Accordingly, results for the reporting period beginning after May 1, 2018 are presented in accordance with ASC 606, while prior period amounts have not been adjusted and continue to be reported under the accounting standards that were in effect for the prior periods. The cumulative effect of adopting ASC 606 resulted in a one-time adjustment of $2,739 to the opening balance of accumulated deficit which is reflected in the accompanying Consolidated Statements of Stockholders’ Equity for the fiscal year ended April 30, 2019. 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 revenue and the related cost of revenue 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 periods, 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 periods. 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 cumulative effect of the adoption of ASC 606 on amounts previously reported on the Consolidated Balance Sheet at April 30, 2018 was as follows: As Reported April 30, 2018 ASC 606 Transition Adjustment 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 impact of the adoption of ASC 606 on the Consolidated Balance Sheet at April 30, 2019 was as follows: As Reported Effect of Adoption Increase/(Decrease) Balance Without Adoption of ASC 606 Contract assets $ 4,327 $ 4,327 $ – Inventories 6,557 (18,293 ) 24,850 Contract liabilities 14,651 (19,771 ) 34,422 The impact of the adoption of ASC 606 on the Consolidated Statements of Operations and Comprehensive Loss for the fiscal year ended April 30, 2019 was as follows: As Reported Effect of Adoption Increase/(Decrease) Balance Without Adoption of ASC 606 Revenues $ 53,603 $ 13,243 $ 40,360 Cost of revenues 46,379 9,743 36,636 Gross profit 7,224 3,500 3,724 Operating loss (5,622 ) 3,500 (9,122 ) Loss from continuing operations (5,056 ) 3,500 (8,556 ) 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 and its related amendments (collectively referred to as Topic 842) (codified as “ASC 842”). The new standard requires lessees to recognize right-of-use assets and corresponding lease liabilities for leases with durations of greater than 12 months on the balance sheet as well as provide disclosures with respect to certain qualitative and quantitative information regarding the amount, timing and uncertainty of cash flows arising from leases. The right-of-use assets and lease liabilities will initially be measured at the present value of the future minimum lease payments over the lease term. Subsequent measurement, including the presentation of expenses and cash flows, will depend on the classification of the lease as either a finance lease or an operating lease. ASC 842 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. On May 1, 2019, we adopted ASC 842 and have elected the optional transition method to apply the standard as of the effective date and therefore, we will not apply the standard to the comparative periods presented in the consolidated financial statements. We have elected the transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification, and initial direct costs. Further, we have elected a short-term lease exception policy, permitting us to not apply the recognition requirements of this standard to short-term leases (i.e., leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. While we are finalizing our evaluation of the impact of the adoption of ASC 842 on our consolidated financial statements and related disclosures, we expect to recognize on our balance sheet right-of-use assets ranging from $22,000 to $25,000, in aggregate, and lease liabilities ranging from $24,000 to $27,000, in aggregate, which are primarily related to our facility operating leases (Note 3). The difference between the right-of-use assets and lease liabilities is primarily attributed to the elimination of deferred rent. The adoption of ASC 842 is also expected to impact our consolidated financial statement disclosures. We do not anticipate the adoption of ASC 842 will have a material impact to our Consolidated Statements of Operations and Comprehensive Loss or to require a cumulative-effect adjustment to the opening balance of accumulated deficit. The estimated impact of adopting ASC 842 is based on our best estimates at the time of the preparation of this Annual Report. The actual impact is subject to change prior to our first quarterly filing of our fiscal year 2020. We are finalizing our implementation related to policies, processes and internal controls to comply with this guidance. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) , Measurement of Credit Losses on Financial Instruments. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, |
3. Leases
3. Leases | 12 Months Ended |
Apr. 30, 2019 | |
Lessee Disclosure [Abstract] | |
Leases | Note 3 – Leases Operating Leases We currently lease office, manufacturing and warehouse space in five buildings under four separate non-cancellable operating lease agreements. All of our leased facilities are located in close proximity in Tustin, California, have original lease terms ranging from 7 to 12 years, contain two multi-year renewal options, and scheduled rent increases of 3% on either an annual or biennial basis. Three of our leases provide for periods of free rent, lessor improvements and tenant improvement allowances, of which, certain of these improvements have been classified as leasehold improvements and are being amortized over the shorter of the estimated useful life of the improvements or the remaining life of the lease. As collateral for three of our leases we are required to maintain letters of credit, which in aggregate is $1,150 and is included in restricted cash in the accompanying Consolidated Balance Sheets as of April 30, 2019 and 2018. Future minimum lease payments under our non-cancelable operating leases as of April 30, 2019 are as follows: Fiscal Year Total 2020 $ 3,032 2021 3,116 2022 3,193 2023 3,281 2024 2,789 Thereafter 8,062 Total $ 23,473 We record rent expense on a straight-line basis over the initial term of the lease. The difference between rent expense and the amounts paid under the operating leases is recorded as a deferred rent liability in the accompanying consolidated financial statements. Annual rent expense under facility operating lease agreements totaled $2,869, $2,935, and $2,180 for the fiscal years ended April 30, 2019, 2018, and 2017, respectively. |
4. Stockholders' Equity
4. Stockholders' Equity | 12 Months Ended |
Apr. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Note 4 Stockholders’ Equity Stockholder Rights Agreement On March 16, 2006, our Board of Directors adopted a Stockholder Rights Agreement, which was amended and restated on March 16, 2016 (the “Rights Agreement”), that is designed to strengthen the ability of the Board of Directors to protect the interests of our stockholders against potential abusive or coercive takeover tactics and to enable all stockholders the full and fair value of their investment in the event that an unsolicited attempt is made to acquire Avid. The Rights Agreement is not intended to prevent an offer the Board of Directors concludes is in the best interest of Avid and its stockholders. Under the Rights Agreement, the Board of Directors declared a dividend of one preferred share purchase right (a “Right”) for each share of our common stock held by stockholders of record as of the close of business on March 27, 2006. Each Right entitles holders of each share of our common stock to buy seven one thousandths (7/1,000th) of a share of Avid’s Series D Participating Preferred Stock, par value $0.001 per share, at an exercise price of $77.00 per share, subject to adjustment. The Rights are neither exercisable nor traded separately from our common stock. The Rights will become exercisable and will detach from the common shares if a person or group acquires 15% or more of our outstanding common stock, without prior approval from our Board of Directors, or announces a tender or exchange offer that would result in that person or group owning 15% or more of our common stock. Each Right, when exercised, entitles the holder (other than the acquiring person or group) to receive our common stock (or in certain circumstances, voting securities of the acquiring person or group) with a value of twice the Rights’ exercise price upon payment of the exercise price of the Rights. Avid will be entitled to redeem the Rights at $0.007 per Right at any time prior to a person or group achieving the 15% threshold. The Rights will expire on March 16, 2021. Series E Preferred Stock On February 12, 2014, we filed with the Secretary of State of the State of Delaware a Certificate of Designations of Rights and Preferences (the “Certificate of Designations”) to designate the 10.50% Series E Convertible Preferred Stock (the “Series E Preferred Stock”). The Certificate of Designations designated 2,000,000 shares of Series E Preferred Stock out of our 5,000,000 shares of authorized but unissued shares of preferred stock. The Series E Preferred Stock is classified as permanent equity in accordance with FASB ASC Topic 480, Distinguishing Liabilities from Equity Each share of Series E Preferred Stock is convertible at any time, at the option of the holder, into a number of whole shares of our common stock at an initial conversion price of $21.00. The Series E Preferred Stock is also subject to conversion upon certain events constituting a change of control and a market trigger conversion, at our option, as defined in the Certificate of Designations. The Series E Preferred Stock has no stated maturity date or mandatory redemption and is senior to all of our other securities. We may redeem the Series E Preferred Stock for cash, in whole or in part, by paying the redemption price of $25.00 per share, plus any accrued and unpaid dividends to the redemption date. Holders of the Series E Preferred Stock have no voting rights, except as defined in the Certificate of Designations. Holders of our Series E Preferred Stock are entitled to receive cumulative dividends at the rate of 10.50% per annum based on the liquidation preference of $25.00 per share, and are payable quarterly in cash, on or about the 1 st Sales of Common Stock and Series E Preferred Stock During the fiscal year ended April 30, 2019, we had no offerings of our common stock or Series E Preferred Stock. During February 2018, we completed an underwriting public offering pursuant to which we sold 10,294,445 shares of our common stock at the public offering price of $2.25 per share. The aggregate gross proceeds we received from the public offering was $23,163, before deducting underwriting discounts and commissions and other offering related expenses of $1,669. During the fiscal years ended April 30, 2018 and 2017, we sold an aggregate of 1,051,259 and 6,137,403 shares of our common stock, respectively, pursuant to an At Market Issuance Sales Agreement (“AMI Sales Agreement) for aggregate gross proceeds of $4,304 and $18,246, respectively. We paid a commission equal to 2.5% of the gross proceeds from the sale of our common stock pursuant to the AMI Sales Agreement. As of April 30, 2018, we had raised the full amount of gross proceeds available to us under the AMI Sales Agreement. During the fiscal year ended April 30, 2017, we sold an aggregate of 3,750,323 shares of our common stock pursuant to an Equity Distribution Agreement for aggregate gross proceeds of $13,031. We paid a commission equal to 2.5% of the gross proceeds from the sale of our common stock pursuant to the Equity Distribution Agreement. As of April 30, 2017, we had raised the full amount of gross proceeds available to us under the Equity Distribution Agreement. During the fiscal year ended April 30, 2017, we sold an aggregate of 70,320 shares of our Series E Preferred Stock pursuant to an At Market Issuance Sales Agreement (“Series E AMI Sales Agreement) for aggregate gross proceeds of $1,634. We paid a commission of up to 5% of the gross proceeds from the sale of our Series E Preferred Stock pursuant to the Series E AMI Sales Agreement. As of April 30, 2017, we are no longer issuing shares of our Series E Preferred Stock under the Series E AMI Sales Agreement. Warrants On August 30, 2018, warrants to purchase 39,040 shares of our common stock expired unexercised. As of April 30, 2019, we had no warrants issued and outstanding. 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 April 30, 2019, 56,135,697 shares of our common stock were issued and outstanding. Our common stock outstanding as of April 30, 2019 excluded the following shares of common stock reserved for future issuance: Shares Stock Incentive Plans 7,264,713 Employee Stock Purchase Plan 1,196,261 Conversion of our outstanding Series E Preferred Stock (1) 6,826,435 _____________ (1) |
5. Benefit Plans
5. Benefit Plans | 12 Months Ended |
Apr. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Benefit Plans | Note 5 – Benefit Plans Stock Incentive Plans On October 4, 2018 (the “Effective Date”), 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 units and other forms of stock-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 the Effective Date. 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. In addition, we currently maintain three expired stock incentive plans referred to as the 2005, 2003 and 2002 Stock Incentive Plans (collectively, the “Expired Plans”). No future grants of stock-based awards can be issued from the Expired Plans, however, all outstanding awards granted under the Expired Plans will remain subject to the terms of the Expired Plans until they are exercised, canceled or expired. The 2018 Plan, the Prior Plans, and the Expired Plans are collectively referred to as the “Stock Plans”. As of April 30, 2019, we had an aggregate of 7,264,713 shares of our common stock reserved for issuance under the Stock Plans, of which, 3,474,590 shares were subject to outstanding stock options and restricted stock units and 3,790,123 shares were available for future grants of stock-based awards. Stock Options Stock options granted under our Stock Plans are granted at an exercise price not less than the fair market value of our common stock on the date of grant. Stock option grants to employees generally vest 25% on each of the first, second, third and fourth anniversaries of the date of grant, and stock option grants to non-employee directors generally vest over a period of one to three years from the date of grant. The maximum contractual term of any stock option granted under the Stock Plans is ten years. The estimated fair value of stock options are measured at the grant date, using a fair value based method, such as a Black-Scholes option valuation model, and is amortized as stock-based compensation expense on a straight-line basis over the requisite service period of the award, which is generally the vesting period. The use of a valuation model requires us to make certain estimates and assumptions with respect to selected model inputs. The expected volatility is based on the daily historical volatility of our common stock covering the estimated expected term. The expected term of options granted reflects actual historical exercise activity and assumptions regarding future exercise activity of unexercised, outstanding options. The risk-free interest rate is based on U.S. Treasury notes with terms within the contractual life of the option at the time of grant. The expected dividend yield assumption is based on our expectation of future dividend payouts. We have never declared or paid any cash dividends on our common stock and currently do not anticipate paying such cash dividends. The fair value of stock options on the date of grant and the weighted-average assumptions used to estimate the fair value of the stock options using the Black-Scholes option valuation model for fiscal years ended April 30, 2019, 2018 and 2017, were as follows: Fiscal Year Ended April 30, 2019 2018 2017 Risk-free interest rate 2.81% 2.21% 1.32% Expected life (in years) 5.57 6.19 6.12 Expected volatility 76.56% 110.43% 111.30% Expected dividend yield – – – The following summarizes our stock option transaction activity for fiscal year ended April 30, 2019: Stock Options Grant Date Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (1) Outstanding at May 1, 2018 3,597,738 $ 8.74 Granted 973,614 $ 5.00 Exercised (371,327 ) $ 3.45 Canceled or expired (925,810 ) $ 11.28 Outstanding at April 30, 2019 3,274,215 $ 7.51 5.53 $ 1,238 Vested and expected to vest 3,274,215 $ 7.51 5.53 $ 1,238 Exercisable at April 30, 2019 1,932,527 $ 9.45 3.87 $ 700 ______________ (1) Aggregate intrinsic value represents the difference between the exercise price of an option and the closing market price of our common stock on April 30, 2019, which was $4.79 per share. The weighted-average grant date fair value of options granted to employees during the fiscal years ended April 30, 2019, 2018 and 2017 was $3.30, $3.50 and $2.86 per share, respectively. The aggregate intrinsic value of stock options exercised during the fiscal years ended April 30, 2019, 2018 and 2017 was $547, $173 and $11, respectively. Cash received from stock options exercised during fiscal years ended April 30, 2019, 2018 and 2017, totaled $1,278, $752 and $31, respectively. We issue shares of common stock that are reserved for issuance under the Stock Plans upon the exercise of stock options, and we do not expect to repurchase shares of common stock from any source to satisfy our obligations under our compensation plans. As of April 30, 2019, the total estimated unrecognized compensation cost related to non-vested employee stock options was $3,880. This cost is expected to be recognized over a weighted average vesting period of 2.70 years based on current assumptions. Restricted Stock A restricted stock unit (“RSU”) represents the right to receive one share of our common stock upon the vesting of each unit. RSUs generally vest over four years at the rate of one-fourth of the shares granted on each anniversary of the date of grant. The estimated fair value of RSUs is based on the closing market value of our common stock on the date of grant, and is amortized as stock-based compensation expense on a straight-line basis over the period of vesting. The following summarizes our RSUs transaction activity for fiscal year ended April 30, 2019: Shares Weighted Average Grant Date Fair Value Outstanding at May 1, 2018 – $ – Granted 217,200 4.28 Vested – – Forfeited (16,825 ) 3.78 Outstanding at April 30, 2019 200,375 $ 4.32 There were no RSUs granted during the fiscal years ended April 30, 2018 and 2017. As of April 30, 2019, the total estimated unrecognized compensation cost related to non-vested RSUs was $733. This cost is expected to be recognized over a weighted average vesting period of 3.34 years. Employee Stock Purchase Plan The Employee Stock Purchase Plan (the “ESPP”) is a stockholders’-approved plan under which allows eligible employees to purchase shares of our common stock through payroll deductions at a price equal to 85% of the lower of the fair market value our common stock as of the first trading day of the offering period or on the last trading day of the six-month offering period. Employee participants are limited to purchase no more than $25,000 of stock in any one calendar year. During the fiscal years ended April 30, 2019, 2018 and 2017, a total of 75,148, 88,327 and 270,075 shares of our common stock were purchased, respectively, under the ESPP at a weighted average purchase price per share of $3.44, $3.59 and $1.95, respectively. As of April 30, 2019, we had 1,196,261 shares of our common stock reserved for issuance under the ESPP. The fair value of the shares purchased under the ESPP was determined using a Black-Scholes option pricing model (see explanation of valuation model inputs above under “Stock Options”), and is recognized as expense on a straight-line basis over the requisite service period (or six-month offering period). The weighted average grant date fair value of purchase rights under the ESPP during fiscal years ended April 30, 2019, 2018 and 2017 was $1.49, $1.65 and $1.07, respectively, based on the following Black-Scholes option valuation model inputs: Fiscal Year Ended April 30, 2019 2018 2017 Risk-free interest rate 2.26% 1.10% 0.46% Expected life (in years) 0.50 0.50 0.50 Expected volatility 71.10% 75.18% 105.27% Expected dividend yield – – – 401(k) Plan We have a 401(k) Plan (the “Plan”) pursuant to section 401(k) of the Internal Revenue Code that allows participating employees to contribute up to 100% of their compensation on a tax deferred basis up to the maximum amount permitted by the Internal Revenue Code. We match 50% of employee contributions of up to 6% of their annual eligible compensation. The expense related to our matching contributions to the Plan was $377, $564 and $845 for the fiscal years ended April 30, 2019, 2018 and 2017, respectively. Stock-based Compensation Expense Stock-based compensation expense for the fiscal years ended April 30, 2019, 2018 and 2017 was comprised of the following: Fiscal Year Ended April 30, 2019 2018 2017 Cost of revenues $ 474 $ 378 $ 108 Selling, general and administrative expense 1,121 820 1,553 Discontinued operations – 340 1,702 Total $ 1,595 $ 1,538 $ 3,363 Due to our net loss position, no tax benefits have been recognized in the Consolidated Statements of Cash Flows. |
6. Income Taxes
6. Income Taxes | 12 Months Ended |
Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6 – Income Taxes We are primarily subject to U.S. federal and California state jurisdictions. To our knowledge, all tax years remain open to examination by U.S. federal and state authorities. In accordance with ASC 740, we are required to recognize the impact of an uncertain tax position in the consolidated financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. An uncertain tax position will not be recognized if it has less than a 50% likelihood of being sustained upon examination by the tax authorities. We had no unrecognized tax benefits from uncertain tax positions as of April 30, 2019 and 2018. It is also our policy, in accordance with authoritative guidance, to recognize interest and penalties related to income tax matters in interest and other expense in our consolidated statements of operations and comprehensive loss. We did not recognize interest or penalties related to income taxes for fiscal years ended April 30, 2019, 2018, and 2017, and we did not accrue for interest or penalties as of April 30, 2019 and 2018. 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. At April 30, 2019, we had net deferred tax assets of $119,516. Due to uncertainties surrounding our ability to generate future taxable income to realize these tax assets, a full valuation has been established to offset our net deferred tax assets. Additionally, the future utilization of our net operating loss carry forwards to offset future taxable income may be subject to an annual limitation, pursuant to Internal Revenue Code Section 382, as a result of ownership changes that may have occurred previously or that could occur in the future. A Section 382 analysis was completed as of the fiscal year ended April 30, 2018 and we subsequently reviewed ownership activity through April 30, 2019, which it was determined that no significant change in ownership had occurred. However, ownership changes occurring subsequent to April 30, 2019 may impact the utilization of net operating loss carry forwards and other tax attributes. At April 30, 2019, we had federal net operating loss carry forwards of approximately $425,841. The federal net operating loss carry forwards generated prior to January 1, 2018 expire in fiscal years 2020 through 2038. The federal net operating loss generated after January 1, 2018 of $6,609 can be carried forward indefinitely and be available to offset up to 80% of future taxable income each year. We also have California state net operating loss carry forwards of approximately $273,581 at April 30, 2019, which begin to expire in fiscal year 2029. The provision for income taxes on our loss from continuing operations for the fiscal years ended April 30, 2019, 2018 and 2017 are comprised of the following: 2019 2018 2017 Federal income taxes at statutory rate $ (1,120 ) $ (6,112 ) $ 475 State income taxes (48 ) 155 309 Expiration and adjustments of deferred tax assets 2,507 1,840 1,693 Change in valuation allowance (2,480 ) (57,599 ) (2,616 ) Stock-based compensation 1,309 1,584 – Other, net (452 ) 6 139 Tax Cuts and Jobs Act – 60,126 – Income tax benefit $ (284 ) $ – $ – Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Significant components of our deferred tax assets and deferred tax liabilities at April 30, 2019 and 2018 are as follows: 2019 2018 Net operating losses $ 113,612 $ 115,236 Stock-based compensation 3,416 4,828 Deferred revenue 1,610 2,852 Deferred rent 555 568 Other 1,256 879 Total deferred tax assets 120,449 124,363 Less valuation allowance (119,516 ) (123,555 ) Total deferred tax assets, net of valuation allowance $ 933 $ 808 Deferred tax liabilities: Fixed assets (933 ) (808 ) Total deferred tax liabilities (933 ) (808 ) Net deferred tax assets $ – $ – On May 1, 2018, we adopted ASC 606 (Note 2). Upon adoption, no change in retained earnings was recorded related to income taxes as we maintain a full valuation allowance. However, an adjustment of approximately $700 was recorded as a deferred tax liability and a corresponding reduction to the valuation allowance. On May 1, 2017, we adopted ASU 2016-09. Upon adoption, we have excess tax benefits for which a benefit could not previously be recognized of approximately $2,400. The balance of the unrecognized excess tax benefits has been reversed with the impact recorded to retained earnings including any change to the valuation allowance as a result of the adoption. Due to the full valuation allowance on the U.S. deferred tax assets, there was no impact to the accompanying consolidated financial statements as a result of adopting ASU 2016-09 other than what is reflected in the accompanying Consolidated Statements of Stockholders’ Equity for the fiscal year ended April 30, 2018. 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% to 21% 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, we recorded a provisional increase in tax expense and a corresponding decrease in net deferred tax assets of $60,126, which were fully offset by a valuation allowance. We applied the guidance under Staff Accounting Bulletin No. 118 when accounting for the enactment-date effects of the Tax Act for the fiscal year ended April 30, 2018 as we had not completed our accounting for all the enactment-date income tax effects of the Tax Act under ASC 740 for the remeasurement of deferred tax assets and liabilities. We completed our accounting for the enactment-date income tax effects of the Tax Act during the quarter ended January 31, 2019. Upon further analyses of the Tax Act and Notices and regulations issued and proposed by the U.S. Department of the Treasury and the Internal Revenue Service provisional amount recognized for the fiscal year ended April 30, 2018 did not change; therefore, there was no adjustment to tax expense. |
7. Net Loss per Common Share
7. Net Loss per Common Share | 12 Months Ended |
Apr. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss per Common Share | Note 7 – Net Loss per Common Share Basic net loss per common share is computed by dividing our net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period, excluding the dilutive effects of stock options, unvested RSUs, shares of common stock expected to be issued under our ESPP, warrants, and Series E Preferred Stock outstanding during the period. Diluted net loss per common share is computed by dividing our net loss attributable to common stockholders by the sum of the weighted average number of shares of common stock outstanding during the period plus the potential dilutive effects of stock options, unvested RSUs, shares of common stock expected to be issued under our ESPP, warrants, and Series E Preferred Stock outstanding during the period. Net loss attributable to common stockholders represents our net loss plus Series E Preferred Stock accumulated dividends. Series E Preferred Stock accumulated dividends include dividends declared for the period (regardless of whether or not the dividends have been paid) and dividends accumulated for the period (regardless of whether or not the dividends have been declared). The potential dilutive effect of stock options, unvested RSUs, shares of common stock expected to be issued under our ESPP, and warrants outstanding during the period are calculated in accordance with the treasury stock method, but are excluded if their effect is anti-dilutive. The potential dilutive effect of our Series E Preferred Stock outstanding during the period was calculated using the if-converted method assuming the conversion of Series E Preferred Stock as of the earliest period reported or at the date of issuance, if later, but are excluded if their effect is anti-dilutive. However, because the impact of stock options, unvested RSUs, shares of common stock expected to be issued under our ESPP, warrants, and Series E Preferred Stock are anti-dilutive during periods of net loss, there was no difference between basic and diluted loss per common share amounts for the three years ended April 30, 2019. The calculation of weighted average diluted shares outstanding excludes the dilutive effect of the following weighted average outstanding stock options, unvested RSUs and shares of common stock expected to be issued under our ESPP as their impact is anti-dilutive during periods of net loss: 2019 2018 2017 Stock options 138,822 53,978 – RSUs 34,122 – – ESPP 10,589 1,972 45,767 Total 183,533 55,950 45,767 The calculation of weighted average diluted shares outstanding also excludes the following weighted average outstanding stock options, unvested RSUs, warrants, and Series E Preferred Stock (assuming the if-converted method), as their exercise prices or conversion price were greater than the average market price of our common stock during the respective periods, resulting in an anti-dilutive effect: 2019 2018 2017 Stock options 2,712,454 3,636,699 4,156,421 RSUs 33,532 – – Warrants 12,942 39,040 39,040 Series E Preferred Stock 1,978,783 1,978,783 1,955,588 Total 4,737,711 5,654,522 6,151,049 |
8. Commitments and Contingencie
8. Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
8. Commitments and Contingencies | Note 8 – Commitments and Contingencies In the ordinary course of business, we are at times subject to various legal proceedings and disputes. We make provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions, if any, are reviewed at least quarterly and adjusted to reflect the impact of any settlement negotiations, judicial and administrative rulings, advice of legal counsel, and other information and events pertaining to a particular case. We currently are not a party to any legal proceedings, the adverse outcome of which, in management’s opinion, individually or in the aggregate, would have a material adverse effect on our consolidated results of operations or financial position. |
9. Restructuring Charges
9. Restructuring Charges | 12 Months Ended |
Apr. 30, 2019 | |
Restructuring Costs [Abstract] | |
Restructuring Charges | Note 9 – Restructuring Charges In August 2017, we implemented a restructuring plan intended to reduce operating costs and improve cost efficiencies while we pursued strategic options for our research and development assets and focused our efforts on growing our CDMO business. Under this restructuring plan, which we completed in October 2017, we reduced our overall workforce by 57 employees. As a result, during the fiscal quarter ended October 31, 2017, we incurred an aggregate of $1,588 in restructuring costs consisting of termination benefits, including severance, and other employee-related costs, of which $330 related to our discontinued research and development segment and $1,258 related to our contract manufacturing services segment. The restructuring costs associated with our discontinued research and development segment are included in income (loss) from discontinued operations, net of tax, in the accompanying consolidated financial statements for the fiscal year ended April 30, 2018 (Note 10). The restructuring costs associated with our contract manufacturing services segment are included in operating expenses in the accompanying consolidated financial statements for the fiscal year ended April 30, 2018. All restructuring costs were paid in full during fiscal year 2018. |
10. Sale of Research and Develo
10. Sale of Research and Development Assets | 12 Months Ended |
Apr. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Research and Development Assets | Note 10 – Sale of Research and Development Assets 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, of which $3,000 was received in fiscal year 2018 and $5,000 was received in fiscal year 2019. 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 April 30, 2019, no development, regulatory or commercialization milestones 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 12, 2018). 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 April 30, 2019, no development, regulatory or commercialization milestones 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 consolidated financial statements for all periods presented. During the fiscal years ended April 30, 2019 and 2018, we recorded a gain of $1,000 and $8,000, respectively, upon the completion of the September 2018 Purchase Agreement and the February 2018 Purchase Agreement, which amounts are included in income (loss) from discontinued operations, net of tax, in the accompanying Consolidated Statements of Operations and Comprehensive Loss for the fiscal years ended April 30, 2019 and 2018, respectively. The results of operations from discontinued operations presented below include certain allocations that management believes fairly reflect the utilization of services provided to the former research and development segment. The allocations do not include amounts related to general corporate administrative expenses or interest expense. Therefore, these results of operations do not necessarily reflect what the results of operations would have been had the former research and development segment operated as a stand-alone segment. The following table summarizes the results of discontinued operations for the fiscal years ended April 30, 2019, 2018 and 2017: 2019 2018 2017 License revenue $ – $ 25 $ – Operating expenses: Research and development – 6,782 27,992 Selling, general and administrative – 2,163 1,560 Restructuring charges – 330 – Total operating expenses – 9,275 29,552 Other income 125 – – Gain on sale of research and development assets before income taxes 1,000 8,000 – Income tax expense 284 – – Income (loss) from discontinued operations, net of tax $ 841 $ (1,250 ) $ (29,552 ) The following table includes the assets and liabilities of discontinued operations as of April 30, 2018. There were no assets or liabilities related to discontinued operations as of April 30, 2019: 2018 Assets: Other receivables $ 5,000 Total assets of discontinued operations $ 5,000 Liabilities: Accounts payable $ 32 Accrued clinical trial and related fees 3,613 Accrued payroll and related costs 614 Other liabilities 291 Total liabilities of discontinued operations $ 4,550 The carrying value of the assets and liabilities deemed a component of the discontinued research and development segment were not classified as “held for sale” in the accompanying 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. |
11. Selected Quarterly Financia
11. Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Apr. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | Note 11 – Selected Quarterly Financial Data (Unaudited) Selected quarterly financial information for each of the two most recent fiscal years is as follows: Fiscal Year Ended April 30, 2019 (a) First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 12,589 $ 10,178 $ 13,781 $ 17,055 Gross profit $ 1,192 $ 334 $ 2,050 $ 3,648 (Loss) income from continuing operations $ (1,961 ) $ (2,190 ) $ (1,139 ) $ 234 Income from discontinued operations, net of tax (b)(c) $ – $ 739 $ – $ 102 Net (loss) income $ (1,961 ) $ (1,451 ) $ (1,139 ) $ 336 Net loss attributable to common stockholders $ (3,403 ) $ (2,893 ) $ (2,581 ) $ (1,106 ) Basic and diluted net (loss) income per common share attributable to common stockholders (d) Continuing operations $ (0.06 ) $ (0.06 ) $ (0.05 ) $ (0.02 ) Discontinued operations $ – $ 0.01 $ – $ – Net loss per common share attributable to common stockholders $ (0.06 ) $ (0.05 ) $ (0.05 ) $ (0.02 ) Fiscal Year Ended April 30, 2018 (a) First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 27,077 $ 12,782 $ 6,819 $ 6,943 Gross profit (loss) $ 6,629 $ (3,460 ) $ (4,132 ) $ (1,961 ) Income (loss) from continuing operations $ 2,800 $ (8,301 ) $ (8,928 ) $ (6,134 ) (Loss) income from discontinued operations, net of tax (b)(c) $ (4,005 ) $ (4,323 ) $ (2,076 ) $ 9,154 Net (loss) income $ (1,205 ) $ (12,624 ) $ (11,004 ) $ 3,020 Net (loss) income attributable to common stockholders $ (2,647 ) $ (14,066 ) $ (12,446 ) $ 1,578 Basic and diluted net income (loss) per common share attributable to common stockholders (d) Continuing operations $ 0.03 $ (0.21 ) $ (0.23 ) $ (0.14 ) Discontinued operations $ (0.09 ) $ (0.10 ) $ (0.05 ) $ 0.17 Net (loss) income per common share attributable to common stockholders $ (0.06 ) $ (0.31 ) $ (0.28 ) $ 0.03 ________________ (a) On May 1, 2018, we adopted ASC 606 using the modified retrospective method applied to all contracts not completed as of May 1, 2018 (Note 2). Under the modified retrospective method, results for the reporting periods beginning on or after May 1, 2018 are presented in accordance with ASC 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards that were in effect prior to May 1, 2018. (b) For all periods presented, the operating results of our former research and development segment are reported as income (loss) from discontinued operations, net of tax (Note 1). (c) Income from discontinued operations, net of tax, for the quarters ended October 31, 2018 and April 30, 2018 include a gain on sale of research and development assets before tax of $1,000 and $8,000, respectively (Note 10). (d) Basic and diluted net income (loss) per common share attributable to common stockholders calculations for each of the quarters are based on the basic and diluted weighted average common shares outstanding for each period. As such, the sum of the quarters may not necessarily equal the basic and diluted net income (loss) per common share amount for the fiscal year. |
12. Subsequent Events
12. Subsequent Events | 12 Months Ended |
Apr. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12 – Subsequent Events On June 5, 2019, 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 April 1, 2019 through June 30, 2019. The cash dividend of $1,081 is payable on July 1, 2019 to holders of the Series E Preferred Stock of record on June 17, 2019. |
2. Summary of Significant Acc_2
2. Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Preparation | Basis of Presentation and Preparation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the accounts of Avid Bioservices, Inc. and its subsidiaries. All intercompany accounts and transactions among the consolidated entities have been eliminated in the consolidated financial statements. The preparation of our financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from these estimates. The financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. At April 30, 2019, we had $32,351 in cash and cash equivalents. Our ability to fund our operations is dependent on the amount of cash on hand and our ability to generate positive cash flow to sustain our current operations. We have expended substantial funds on our contract manufacturing business and, historically, on our legacy research and development of pharmaceutical product candidates. As a result, we have historically experienced losses and negative cash flows from operations since our inception and expect negative cash flows from operations to continue until we can generate sufficient revenue to generate positive cash flow from operations. We plan to fund our operations using our existing cash and cash equivalents and cash generated from services provided under our customer contracts. In the event we are unable to secure sufficient business to support our current operations, we may need to raise additional capital in the future. There can be no assurance that equity financing will be available on acceptable terms or at all. Our ability to raise additional capital in the equity markets to fund our future operations is dependent 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, our financial results and economic and market conditions. If we are unable to fund our continuing operations through these sources 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. Any of these actions could materially harm our business, results of operations, and future prospects. Further, we performed an analysis and concluded that based on our cash and cash equivalents as of April 30, 2019 in conjunction with cash generated from services provided under our customer contracts will provide us with adequate cash on hand to support our operations for at least one year from the date that our consolidated financial statements are issued. Certain prior year amounts related to deferred revenue and customer deposits have been reclassified to contract liabilities to conform to the current period’s presentation. This reclassification had no effect on previously reported net loss. |
Discontinued Operations | 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, net of tax in the accompanying consolidated financial statements. 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 Consolidated Balance Sheet at April 30, 2018. For additional information on the discontinuation of our research and development segment, refer to Note 10, “Sale of Research and Development Assets”. |
Segment Reporting | Segment Reporting Our business had historically been organized into two reportable operating segments: (i) contract manufacturing services and (ii) research and development. However, as a result of the aforementioned discontinuation of our research and development segment, management has determined that the Company operates in only one operating segment. Accordingly, we reported our financial results for one reportable segment |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all short-term investments readily convertible to cash, without notice or penalty, with an initial maturity of 90 days or less to be cash equivalents. |
Restricted cash | Restricted Cash Under the terms of three separate operating leases related to our facilities, we are required to maintain, as collateral, letters of credit during the terms of such leases (Note 3). At April 30, 2019 and 2018, restricted cash of $1,150 was pledged as collateral under these letters of credit. |
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 generally 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 generally represents revenue from non-manufacturing related services associated with the custom development of a manufacturing process and analytical methods for 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 revenue for the fiscal years ended April 30, 2019, 2018 and 2017 by revenue stream. Fiscal Year Ended April 30, 2019 2018 2017 Manufacturing revenue $ 43,432 $ 47,437 $ 52,215 Process development revenue 10,171 6,184 5,415 Total Revenues $ 53,603 $ 53,621 $ 57,630 Revenues for the fiscal years ended April 30, 2018 and 2017 have not been adjusted in accordance with our modified retrospective adoption of Accounting Standards Concepts (“ASC”) 606 Revenue from Contracts with Customers (“ASC 606”) as of May 1, 2018, and continues to be reported under the accounting standards that were in effect prior to our adoption of ASC 606 as further discussed below under the section, “ Accounting Standards Adopted in Fiscal Year 2019 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 convert to revenue as we perform our obligations under the contract. Payment terms can vary by the type of contract manufacturing services offered, however, the term between invoicing and when payment is due is not significant. For certain services, payment prior to satisfaction of a performance obligation can be required, and results in recording a contract liability. During the fiscal year ended April 30, 2019, we recognized revenue of $14,312 for which the contract liability was recorded in the prior year. 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 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 consolidated statements of operations and comprehensive loss. |
Accounts Receivable | Accounts Receivable Accounts receivable generally represent trade amounts billed for contract manufacturing services and are recorded at the invoiced amount net of an allowance for doubtful accounts, if necessary. Accounts receivable consisted of the following: April 30, 2019 2018 Trade receivables $ 7,374 $ 3,539 Other receivables – 215 Total Accounts receivable $ 7,374 $ 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 April 30, 2019 and 2018, we determined no allowance for doubtful accounts was necessary. |
Concentrations of Credit Risk and Customer Base | Concentrations of Credit Risk and Customer Base Financial instruments that potentially subject us to a significant concentration of credit risk consist of cash and cash equivalents, restricted cash, trade receivables and contract assets. We maintain our cash and restricted cash balances primarily with one major commercial bank and our deposits held with the bank exceed the amount of government insurance limits provided on our deposits. We are exposed to credit risk in the event of default by the major commercial bank holding our cash and restricted cash balances to the extent of the cash and restricted cash amounts recorded on the accompanying consolidated balance sheet. Our trade receivables from amounts billed for contract manufacturing services have historically been derived from a small customer base. Most contracts require up-front payments and installment payments during the service period. We perform periodic evaluations of the financial condition of our customers and generally do not require collateral, but we can terminate any contract if a material default occurs. At April 30, 2019 and 2018, approximately 95% and 93%, respectively, of our trade receivables were due from six customers. Our contract assets are reclassified to trade receivables when our rights to consideration become unconditional. At April 30, 2019 approximately 87% of our contract assets were attributable to eight customers. Our revenues have historically been derived from a small customer base. Historically, these customers have not entered into long-term contracts because their need for drug supply depends on a variety of factors, including a product’s stage of development, the timing of regulatory filings and approvals, the product needs of their collaborators, if applicable, their financial resources and the market demand with respect to a commercial product. The percentages below represent revenues derived from each customer as a percentage of total revenues during the fiscal years ended April 30, 2019, 2018 and 2017: Customer Geographic Location 2019 2018 2017 Halozyme Therapeutics, Inc. U.S. 30% 55% 58% ADC Therapeutics America Inc. U.S. 21 9 – Coherus BioSciences, Inc. U.S. 13 22 26 Other customers U.S./non-U.S. 36 14 16 Total 100% 100% 100% We attribute revenue to the individual countries where the customer is headquartered. Revenues derived from U.S. based customers were 95%, 99% and 100% for the fiscal years ended April 30, 2019, 2018 and 2017, respectively. |
Inventories | Inventories Inventories are valued at the lower of cost or net realizable value, determined by the first-in, first-out method. Subsequent to the adoption of ASC 606 (Note 2), manufacturing costs associated with work-in-process inventory (comprised of raw materials, direct labor and overhead costs associated with in-process manufacturing services) are recorded to cost of revenues in the accompanying consolidated financial statements as incurred. Overhead costs allocated to work-in-process inventory are based on the normal capacity of our production facilities and do not include costs from under absorption of overhead costs or idle capacity, which are expensed directly to cost of revenues in the period incurred. Inventories consist of the following: April 30, 2019 2018 Raw materials $ 6,557 $ 8,165 Work-in-process – 7,964 Total Inventories $ 6,557 $ 16,129 We periodically review raw materials inventory for potential impairment and adjust inventory to its net realizable value based on the estimate of future use and reduce the carrying value of inventory as determined necessary. |
Property and Equipment, net | Property and Equipment Property and equipment is recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related asset, generally ranging from three to ten years. Amortization of leasehold improvements is calculated using the straight-line method over the shorter of the estimated useful life of the asset or the remaining lease term. Construction-in-progress, which represents direct costs related to the construction of various equipment and leasehold improvements primarily associated with our manufacturing facilities, are not depreciated until the asset is completed and placed into service. No interest was incurred or capitalized as construction-in-progress as of April 30, 2019 and 2018. All of our property and equipment are located in the U.S. Property and equipment consist of the following: April 30, 2019 2018 Leasehold improvements $ 20,574 $ 20,686 Laboratory and manufacturing equipment 12,858 10,258 Computer equipment and software 4,644 4,087 Furniture, fixtures and office equipment 528 510 Construction-in-progress 1,590 3,310 Total Property and equipment, gross 40,194 38,851 Less: Accumulated depreciation and amortization (14,569 ) (12,372 ) Total Property and equipment, net $ 25,625 $ 26,479 Depreciation and amortization expense for the years ended April 30, 2019, 2018 and 2017 was $2,746, $2,562 and $2,463, respectively. |
Impairment | Impairment Long-lived assets are reviewed for impairment in accordance with authoritative guidance for impairment or disposal of long-lived assets. Long-lived assets are reviewed for events or changes in circumstances that indicate that their carrying value may not be recoverable. Long-lived assets are reported at the lower of carrying amount or fair value less cost to sell. For the fiscal years ended April 30, 2019 and 2018, there were no indicators of impairment of the value of our long-lived assets. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts in the accompanying Consolidated Balance Sheets for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to their short-term maturities. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance prioritizes the inputs used in measuring fair value into the following hierarchy: · Level 1 – Observable inputs, such as unadjusted quoted prices in active markets for identical assets or liabilities. · Level 2 – Observable inputs other than quoted prices included in Level 1, such as assets or liabilities whose values are based on quoted market prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. · Level 3 – Unobservable inputs that are supported by little or no market activity and significant to the overall fair value measurement of the assets or liabilities; therefore, requiring the company to develop its own valuation techniques and assumptions. As of April 30, 2019 and 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 fiscal years ended April 30, 2019 and 2018. |
Deferred Rent | Deferred Rent Rent expense is recorded on a straight-line basis over the initial term of our operating lease agreements and the difference between rent expense and the amounts paid is recorded as a deferred rent liability. Incentives granted under our operating leases, including tenant improvements and landlord-funded lease incentives, are recorded as a deferred rent liability, which is amortized as a reduction to rent expense over the term of the operating lease (Note 3). |
Restructuring Charges | Restructuring Charges 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 and completed during the fiscal year ended April 30, 2018 (Note 9). One-time termination benefits were expensed at the date we notified the employee, unless the employee was required to provide future service, in which case the benefits were expensed ratably over the future service period. |
Stock-Based Compensation | Stock-Based Compensation We account for stock options, restricted stock units and other stock-based awards granted under our equity compensation plans in accordance with the authoritative guidance for stock-based compensation. The estimated fair value of stock options granted to employees in exchange for services is measured at the grant date, using a fair value based method, such as a Black-Scholes option valuation model, and is recognized as expense on a straight-line basis over the requisite service periods. The fair value of restricted stock units is measured at the grant date based on the closing market price of our common stock on the date of grant, and is recognized as expense on a straight-line basis over the period of vesting. Forfeitures are recognized as a reduction of stock-based compensation expense as they occur. As of April 30, 2019, there were no outstanding stock-based awards with market or performance conditions. |
Income Taxes | Income Taxes We utilize the liability method of accounting for income taxes in accordance with ASC 740: Income Taxes The income tax benefit recognized in the accompanying Consolidated Statements of Operations and Comprehensive Loss for the year ended April 30, 2019 resulted from the “Intraperiod Tax Allocation” rules under ASC 740, which requires the allocation of an entity’s total annual income tax provision among continuing operations and, in our case, discontinued operations. Accordingly, a tax benefit was recorded in continuing operations with an offsetting tax expense recorded in discontinued operations (Note 10). |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is the change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive loss is equal to our net loss for all periods presented. |
Accounting Standards Adopted in Fiscal Year 2019 | Accounting Standards Adopted in Fiscal Year 2019 In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (codified as ASC 606), which, along with subsequent amendments issued after May 2014, replaced substantially all the relevant U.S. GAAP revenue recognition guidance. ASC 606, as amended, is based on the principle that revenue is recognized to depict the contractual transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services utilizing a new five-step revenue recognition model, which steps include (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. On May 1, 2018, we adopted ASC 606, as amended, to all contracts that had not been completed as of May 1, 2018 using the modified retrospective method. Accordingly, results for the reporting period beginning after May 1, 2018 are presented in accordance with ASC 606, while prior period amounts have not been adjusted and continue to be reported under the accounting standards that were in effect for the prior periods. The cumulative effect of adopting ASC 606 resulted in a one-time adjustment of $2,739 to the opening balance of accumulated deficit which is reflected in the accompanying Consolidated Statements of Stockholders’ Equity for the fiscal year ended April 30, 2019. 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 revenue and the related cost of revenue 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 periods, 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 periods. 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 cumulative effect of the adoption of ASC 606 on amounts previously reported on the Consolidated Balance Sheet at April 30, 2018 was as follows: As Reported April 30, 2018 ASC 606 Transition Adjustment 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 impact of the adoption of ASC 606 on the Consolidated Balance Sheet at April 30, 2019 was as follows: As Reported Effect of Adoption Increase/(Decrease) Balance Without Adoption of ASC 606 Contract assets $ 4,327 $ 4,327 $ – Inventories 6,557 (18,293 ) 24,850 Contract liabilities 14,651 (19,771 ) 34,422 The impact of the adoption of ASC 606 on the Consolidated Statements of Operations and Comprehensive Loss for the fiscal year ended April 30, 2019 was as follows: As Reported Effect of Adoption Increase/(Decrease) Balance Without Adoption of ASC 606 Revenues $ 53,603 $ 13,243 $ 40,360 Cost of revenues 46,379 9,743 36,636 Gross profit 7,224 3,500 3,724 Operating loss (5,622 ) 3,500 (9,122 ) Loss from continuing operations (5,056 ) 3,500 (8,556 ) 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 and its related amendments (collectively referred to as Topic 842) (codified as “ASC 842”). The new standard requires lessees to recognize right-of-use assets and corresponding lease liabilities for leases with durations of greater than 12 months on the balance sheet as well as provide disclosures with respect to certain qualitative and quantitative information regarding the amount, timing and uncertainty of cash flows arising from leases. The right-of-use assets and lease liabilities will initially be measured at the present value of the future minimum lease payments over the lease term. Subsequent measurement, including the presentation of expenses and cash flows, will depend on the classification of the lease as either a finance lease or an operating lease. ASC 842 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. On May 1, 2019, we adopted ASC 842 and have elected the optional transition method to apply the standard as of the effective date and therefore, we will not apply the standard to the comparative periods presented in the consolidated financial statements. We have elected the transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification, and initial direct costs. Further, we have elected a short-term lease exception policy, permitting us to not apply the recognition requirements of this standard to short-term leases (i.e., leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. While we are finalizing our evaluation of the impact of the adoption of ASC 842 on our consolidated financial statements and related disclosures, we expect to recognize on our balance sheet right-of-use assets ranging from $22,000 to $25,000, in aggregate, and lease liabilities ranging from $24,000 to $27,000, in aggregate, which are primarily related to our facility operating leases (Note 3). The difference between the right-of-use assets and lease liabilities is primarily attributed to the elimination of deferred rent. The adoption of ASC 842 is also expected to impact our consolidated financial statement disclosures. We do not anticipate the adoption of ASC 842 will have a material impact to our Consolidated Statements of Operations and Comprehensive Loss or to require a cumulative-effect adjustment to the opening balance of accumulated deficit. The estimated impact of adopting ASC 842 is based on our best estimates at the time of the preparation of this Annual Report. The actual impact is subject to change prior to our first quarterly filing of our fiscal year 2020. We are finalizing our implementation related to policies, processes and internal controls to comply with this guidance. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) , Measurement of Credit Losses on Financial Instruments. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, |
2. Summary of Significant Acc_3
2. Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Accounting Policies [Abstract] | |
Disaggregation of revenue | Fiscal Year Ended April 30, 2019 2018 2017 Manufacturing revenue $ 43,432 $ 47,437 $ 52,215 Process development revenue 10,171 6,184 5,415 Total Revenues $ 53,603 $ 53,621 $ 57,630 |
Schedule of accounts receivable | April 30, 2019 2018 Trade receivables $ 7,374 $ 3,539 Other receivables – 215 Total Accounts receivable $ 7,374 $ 3,754 |
Concentration of revenues | Customer Geographic Location 2019 2018 2017 Halozyme Therapeutics, Inc. U.S. 30% 55% 58% ADC Therapeutics America Inc. U.S. 21 9 – Coherus BioSciences, Inc. U.S. 13 22 26 Other customers U.S./non-U.S. 36 14 16 Total 100% 100% 100% |
Inventories | April 30, 2019 2018 Raw materials $ 6,557 $ 8,165 Work-in-process – 7,964 Total Inventories $ 6,557 $ 16,129 |
Schedule of property and equipment | April 30, 2019 2018 Leasehold improvements $ 20,574 $ 20,686 Laboratory and manufacturing equipment 12,858 10,258 Computer equipment and software 4,644 4,087 Furniture, fixtures and office equipment 528 510 Construction-in-progress 1,590 3,310 Total Property and equipment, gross 40,194 38,851 Less: Accumulated depreciation and amortization (14,569 ) (12,372 ) Total Property and equipment, net $ 25,625 $ 26,479 |
Impact of the adoption of ASC 606 | The cumulative effect of the adoption of ASC 606 on amounts previously reported on the Consolidated Balance Sheet at April 30, 2018 was as follows: As Reported April 30, 2018 ASC 606 Transition Adjustment 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 impact of the adoption of ASC 606 on the Consolidated Balance Sheet at April 30, 2019 was as follows: As Reported Effect of Adoption Increase/(Decrease) Balance Without Adoption of ASC 606 Contract assets $ 4,327 $ 4,327 $ – Inventories 6,557 (18,293 ) 24,850 Contract liabilities 14,651 (19,771 ) 34,422 The impact of the adoption of ASC 606 on the Consolidated Statements of Operations and Comprehensive Loss for the fiscal year ended April 30, 2019 was as follows: As Reported Effect of Adoption Increase/(Decrease) Balance Without Adoption of ASC 606 Revenues $ 53,603 $ 13,243 $ 40,360 Cost of revenues 46,379 9,743 36,636 Gross profit 7,224 3,500 3,724 Operating loss (5,622 ) 3,500 (9,122 ) Loss from continuing operations (5,056 ) 3,500 (8,556 ) |
3. Leases (Tables)
3. Leases (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Lessee Disclosure [Abstract] | |
Future minimum lease payments | Fiscal Year Total 2020 $ 3,032 2021 3,116 2022 3,193 2023 3,281 2024 2,789 Thereafter 8,062 Total $ 23,473 |
4. Stockholders' Equity (Tables
4. Stockholders' Equity (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Equity [Abstract] | |
Schedule of common stock reserved for future issuance | Shares Stock Incentive Plans 7,264,713 Employee Stock Purchase Plan 1,196,261 Conversion of our outstanding Series E Preferred Stock (1) 6,826,435 _____________ (1) |
5. Benefit Plans (Tables)
5. Benefit Plans (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Schedule of stock option activity | Stock Options Grant Date Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (1) Outstanding at May 1, 2018 3,597,738 $ 8.74 Granted 973,614 $ 5.00 Exercised (371,327 ) $ 3.45 Canceled or expired (925,810 ) $ 11.28 Outstanding at April 30, 2019 3,274,215 $ 7.51 5.53 $ 1,238 Vested and expected to vest 3,274,215 $ 7.51 5.53 $ 1,238 Exercisable at April 30, 2019 1,932,527 $ 9.45 3.87 $ 700 ______________ (1) Aggregate intrinsic value represents the difference between the exercise price of an option and the closing market price of our common stock on April 30, 2019, which was $4.79 per share. |
Schedule of RSU activity | Shares Weighted Average Grant Date Fair Value Outstanding at May 1, 2018 – $ – Granted 217,200 4.28 Vested – – Forfeited (16,825 ) 3.78 Outstanding at April 30, 2019 200,375 $ 4.32 |
Share-based compensation expense | Fiscal Year Ended April 30, 2019 2018 2017 Cost of revenues $ 474 $ 378 $ 108 Selling, general and administrative expense 1,121 820 1,553 Discontinued operations – 340 1,702 Total $ 1,595 $ 1,538 $ 3,363 |
Equity Option [Member] | |
Fair value valuation assumptions | Fiscal Year Ended April 30, 2019 2018 2017 Risk-free interest rate 2.81% 2.21% 1.32% Expected life (in years) 5.57 6.19 6.12 Expected volatility 76.56% 110.43% 111.30% Expected dividend yield – – – |
Employee Stock Purchase Plan [Member] | |
Fair value valuation assumptions | Fiscal Year Ended April 30, 2019 2018 2017 Risk-free interest rate 2.26% 1.10% 0.46% Expected life (in years) 0.50 0.50 0.50 Expected volatility 71.10% 75.18% 105.27% Expected dividend yield – – – |
6. Income Taxes (Tables)
6. Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision for income taxes | 2019 2018 2017 Federal income taxes at statutory rate $ (1,120 ) $ (6,112 ) $ 475 State income taxes (48 ) 155 309 Expiration and adjustments of deferred tax assets 2,507 1,840 1,693 Change in valuation allowance (2,480 ) (57,599 ) (2,616 ) Stock-based compensation 1,309 1,584 – Other, net (452 ) 6 139 Tax Cuts and Jobs Act – 60,126 – Income tax benefit $ (284 ) $ – $ – |
Deferred income taxes | 2019 2018 Net operating losses $ 113,612 $ 115,236 Stock-based compensation 3,416 4,828 Deferred revenue 1,610 2,852 Deferred rent 555 568 Other 1,256 879 Total deferred tax assets 120,449 124,363 Less valuation allowance (119,516 ) (123,555 ) Total deferred tax assets, net of valuation allowance $ 933 $ 808 Deferred tax liabilities: Fixed assets (933 ) (808 ) Total deferred tax liabilities (933 ) (808 ) Net deferred tax assets $ – $ – |
7. Net Loss per Common Share (T
7. Net Loss per Common Share (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Earnings Per Share [Abstract] | |
Antidilutive shares | 2019 2018 2017 Stock options 138,822 53,978 – RSUs 34,122 – – ESPP 10,589 1,972 45,767 Total 183,533 55,950 45,767 The calculation of weighted average diluted shares outstanding also excludes the following weighted average outstanding stock options, unvested RSUs, warrants, and Series E Preferred Stock (assuming the if-converted method), as their exercise prices or conversion price were greater than the average market price of our common stock during the respective periods, resulting in an anti-dilutive effect: 2019 2018 2017 Stock options 2,712,454 3,636,699 4,156,421 RSUs 33,532 – – Warrants 12,942 39,040 39,040 Series E Preferred Stock 1,978,783 1,978,783 1,955,588 Total 4,737,711 5,654,522 6,151,049 |
10. Sale of Research and Deve_2
10. Sale of Research and Development Assets (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations summary | The following table summarizes the results of discontinued operations for the fiscal years ended April 30, 2019, 2018 and 2017: 2019 2018 2017 License revenue $ – $ 25 $ – Operating expenses: Research and development – 6,782 27,992 Selling, general and administrative – 2,163 1,560 Restructuring charges – 330 – Total operating expenses – 9,275 29,552 Other income 125 – – Gain on sale of research and development assets before income taxes 1,000 8,000 – Income tax expense 284 – – Income (loss) from discontinued operations, net of tax $ 841 $ (1,250 ) $ (29,552 ) The following table includes only the assets and liabilities of discontinued operations as of April 30, 2018. There were no assets or liabilities related to discontinued operations as of April 30, 2019: 2018 Assets: Other receivables $ 5,000 Total assets of discontinued operations $ 5,000 Liabilities: Accounts payable $ 32 Accrued clinical trial and related fees 3,613 Accrued payroll and related costs 614 Other liabilities 291 Total liabilities of discontinued operations $ 4,550 |
11. Selected Quarterly Financ_2
11. Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected quarterly financial information for each of the two most recent fiscal | Fiscal Year Ended April 30, 2019 (a) First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 12,589 $ 10,178 $ 13,781 $ 17,055 Gross profit $ 1,192 $ 334 $ 2,050 $ 3,648 (Loss) income from continuing operations $ (1,961 ) $ (2,190 ) $ (1,139 ) $ 234 Income from discontinued operations, net of tax (b)(c) $ – $ 739 $ – $ 102 Net (loss) income $ (1,961 ) $ (1,451 ) $ (1,139 ) $ 336 Net loss attributable to common stockholders $ (3,403 ) $ (2,893 ) $ (2,581 ) $ (1,106 ) Basic and diluted net (loss) income per common share attributable to common stockholders (d) Continuing operations $ (0.06 ) $ (0.06 ) $ (0.05 ) $ (0.02 ) Discontinued operations $ – $ 0.01 $ – $ – Net loss per common share attributable to common stockholders $ (0.06 ) $ (0.05 ) $ (0.05 ) $ (0.02 ) Fiscal Year Ended April 30, 2018 (a) First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 27,077 $ 12,782 $ 6,819 $ 6,943 Gross profit (loss) $ 6,629 $ (3,460 ) $ (4,132 ) $ (1,961 ) Income (loss) from continuing operations $ 2,800 $ (8,301 ) $ (8,928 ) $ (6,134 ) (Loss) income from discontinued operations, net of tax (b)(c) $ (4,005 ) $ (4,323 ) $ (2,076 ) $ 9,154 Net (loss) income $ (1,205 ) $ (12,624 ) $ (11,004 ) $ 3,020 Net (loss) income attributable to common stockholders $ (2,647 ) $ (14,066 ) $ (12,446 ) $ 1,578 Basic and diluted net income (loss) per common share attributable to common stockholders (d) Continuing operations $ 0.03 $ (0.21 ) $ (0.23 ) $ (0.14 ) Discontinued operations $ (0.09 ) $ (0.10 ) $ (0.05 ) $ 0.17 Net (loss) income per common share attributable to common stockholders $ (0.06 ) $ (0.31 ) $ (0.28 ) $ 0.03 ________________ (a) On May 1, 2018, we adopted ASC 606 using the modified retrospective method applied to all contracts not completed as of May 1, 2018 (Note 2). Under the modified retrospective method, results for the reporting periods beginning on or after May 1, 2018 are presented in accordance with ASC 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards that were in effect prior to May 1, 2018. (b) For all periods presented, the operating results of our former research and development segment are reported as income (loss) from discontinued operations, net of tax (Note 1). (c) Income from discontinued operations, net of tax, for the quarters ended October 31, 2018 and April 30, 2018 include a gain on sale of research and development assets before tax of $1,000 and $8,000, respectively (Note 10). (d) Basic and diluted net income (loss) per common share attributable to common stockholders calculations for each of the quarters are based on the basic and diluted weighted average common shares outstanding for each period. As such, the sum of the quarters may not necessarily equal the basic and diluted net income (loss) per common share amount for the fiscal year. |
1. Description of Company and_2
1. Description of Company and Basis of Presentation (Details Narrative) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019USD ($)Number | Apr. 30, 2018USD ($) | Apr. 30, 2017USD ($) | |
Organization And Business Description | |||
Cash and cash equivalents | $ | $ 32,351 | $ 42,265 | $ 46,799 |
Segments | Number | 2 |
2. Summary of Significant Acc_4
2. Summary of Significant Accounting Policies (Details - Revenue) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Revenues | $ 53,603 | $ 53,621 | $ 57,630 |
Manufacturing Revenue [Member] | |||
Revenues | 43,432 | 47,437 | 52,215 |
Process Development Revenue [Member] | |||
Revenues | $ 10,171 | $ 6,184 | $ 5,415 |
2. Summary of Significant Acc_5
2. Summary of Significant Accounting Policies (Details - Receivables) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Accounting Policies [Abstract] | ||
Trade receivables | $ 7,374 | $ 3,539 |
Other receivables | 0 | 215 |
Trade and other receivables | $ 7,374 | $ 3,754 |
2. Summary of Significant Acc_6
2. Summary of Significant Accounting Policies (Details - Percentage breakdown) | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Halozyme Therapeutics, Inc [Member] | |||
Customer revenue as a percentage of revenue | 30.00% | 55.00% | 58.00% |
ADC Therapeutics America [Member] | |||
Customer revenue as a percentage of revenue | 21.00% | 9.00% | 0.00% |
Coherus BioSciences, Inc. | |||
Customer revenue as a percentage of revenue | 13.00% | ||
Other Customers | |||
Customer revenue as a percentage of revenue | 36.00% | 14.00% | 16.00% |
Coherus Biosciences, Inc. [Member] | |||
Customer revenue as a percentage of revenue | 22.00% | 26.00% |
2. Summary of Significant Acc_7
2. Summary of Significant Accounting Policies (Details - Inventories) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Accounting Policies [Abstract] | ||
Raw materials | $ 6,557 | $ 8,165 |
Work-in-process | 0 | 7,964 |
Total inventories | $ 6,557 | $ 16,129 |
2. Summary of Significant Acc_8
2. Summary of Significant Accounting Policies (Details - Property and Equipment) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Property and equipment, gross | $ 40,194 | $ 38,851 |
Less: Accumulated depreciation and amortization | (14,569) | (12,372) |
Total property and equipment, net | 25,625 | 26,479 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 20,574 | 20,686 |
Laboratory and manufacturing equipment [Member] | ||
Property and equipment, gross | 12,858 | 10,258 |
Computer Equipment and software [Member] | ||
Property and equipment, gross | 4,644 | 4,087 |
Furniture, fixtures and office equipment [Member] | ||
Property and equipment, gross | 528 | 510 |
Construction in Progress [Member] | ||
Property and equipment, gross | $ 1,590 | $ 3,310 |
2. Summary of Significant Acc_9
2. Summary of Significant Accounting Policies (Details - Impact on Balance sheet ) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Contract assets | $ 4,327 | $ 0 |
Inventories | 6,557 | 16,129 |
Contract Liabilities | 14,651 | 27,935 |
Other current liabilities | 619 | 905 |
Accumulated deficit | (560,605) | (559,129) |
Balance Without Adoption of ASC 606 [Member] | ||
Contract assets | 0 | 2,888 |
Inventories | 24,850 | 8,258 |
Contract Liabilities | 34,422 | 20,022 |
Other current liabilities | 1,096 | |
Accumulated deficit | (556,390) | |
Effect of Adoption [Member] | ||
Contract assets | 4,327 | 2,888 |
Inventories | (18,293) | (7,871) |
Contract Liabilities | $ (19,771) | (7,913) |
Other current liabilities | 191 | |
Accumulated deficit | $ 2,739 |
2. Summary of Significant Ac_10
2. Summary of Significant Accounting Policies (Details - Impact on statement of operations and comprehensive loss ) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Apr. 30, 2019 | [1] | Jan. 31, 2019 | [1] | Oct. 31, 2018 | [1] | Jul. 31, 2018 | [1] | Apr. 30, 2018 | [1] | Jan. 31, 2018 | [1] | Oct. 31, 2017 | [1] | Jul. 31, 2017 | [1] | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Revenues | $ 53,603 | $ 53,621 | $ 57,630 | ||||||||||||||||
Cost of revenues | 46,379 | 56,545 | 38,259 | ||||||||||||||||
Gross profit | $ 3,648 | $ 2,050 | $ 334 | $ 1,192 | $ (1,961) | $ (4,132) | $ (3,460) | $ 6,629 | 7,224 | (2,924) | 19,371 | ||||||||
Operating loss | (5,622) | (20,638) | 1,292 | ||||||||||||||||
Loss from continuing operations | (5,056) | $ (20,563) | $ 1,393 | ||||||||||||||||
Balance Without Adoption of ASC 606 [Member] | |||||||||||||||||||
Revenues | 40,360 | ||||||||||||||||||
Cost of revenues | 36,636 | ||||||||||||||||||
Gross profit | 3,724 | ||||||||||||||||||
Operating loss | (9,122) | ||||||||||||||||||
Loss from continuing operations | (8,556) | ||||||||||||||||||
Effect of Adoption [Member] | |||||||||||||||||||
Revenues | 13,243 | ||||||||||||||||||
Cost of revenues | 9,743 | ||||||||||||||||||
Gross profit | 3,500 | ||||||||||||||||||
Operating loss | 3,500 | ||||||||||||||||||
Loss from continuing operations | $ 3,500 | ||||||||||||||||||
[1] | On May 1, 2018, we adopted ASC 606 using the modified retrospective method applied to all contracts not completed as of May 1, 2018 (Note 2). Under the modified retrospective method, results for the reporting periods beginning on or after May 1, 2018 are presented in accordance with ASC 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards that were in effect prior to May 1, 2018. |
2. Summary of Significant Ac_11
2. Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Restricted cash pledged as collateral | $ 1,150 | $ 1,150 | $ 1,150 |
Revenue recognized for which the contract liability was recorded in the prior year | 14,312 | ||
Allowance for doubtful accounts | 0 | 0 | |
Interest expense on construction in progress | 0 | ||
Depreciation and amortization | 2,746 | 2,562 | $ 2,463 |
Impairment of long-lived assets | 0 | $ 0 | |
Cumulative effect of ASC 606 adoption | $ 2,739 | ||
Sales Revenue Net [Member] | |||
Concentration risk percentage | 95.00% | 99.00% | 100.00% |
3. Leases (Details - Future lea
3. Leases (Details - Future lease payments) $ in Thousands | Apr. 30, 2019USD ($) |
Lessee Disclosure [Abstract] | |
2020 | $ 3,032 |
2021 | 3,116 |
2022 | 3,193 |
2023 | 3,281 |
2024 | 2,789 |
Thereafter | 8,062 |
Operating Leases, Future Minimum Payments Due | $ 23,473 |
3. Leases (Details Narrative)
3. Leases (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Lessee Disclosure [Abstract] | |||
Annual rent expense | $ 2,869 | $ 2,935 | $ 2,180 |
4. Stockholders' Equity (Detail
4. Stockholders' Equity (Details - Common stock outstanding) | Apr. 30, 2019shares |
Series E Preferred Stock [Member] | |
Common stock reserved for future issuance | 6,826,435 |
Stock Incentive Plans [Member] | |
Common stock reserved for future issuance | 7,246,713 |
Employee Stock Purchase Plan [Member] | |
Common stock reserved for future issuance | 1,196,261 |
4. Stockholders' Equity (Deta_2
4. Stockholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
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 | |
Dividends paid | $ 4,325 | $ 4,325 | $ 4,279 |
Proceeds from sale of common stock | 0 | 25,687 | 30,450 |
Proceeds from sale of preferred stock | $ 0 | 0 | 1,576 |
Series E Preferred Stock [Member] | |||
Preferred stock, shares authorized | 2,000,000 | ||
Preferred stock, shares issued | 1,647,760 | ||
Preferred stock, shares outstanding | 1,647,760 | ||
Conversion price per share | $ 21 | ||
Redemption price | 25 | ||
Liquidation preference price per share | $ 2.625 | ||
Dividends paid | $ 4,325 | 4,325 | $ 4,279 |
Common stock to be issued if Series E stock is converted | 1,961,619 | ||
Each outstanding share that could be converted into common shares | 4.18 | ||
Series E Preferred Stock [Member] | AMI Sales Agreement [Member] | |||
Stock issued new, shares | 70,320 | ||
Proceeds from sale of preferred stock | $ 1,634 | ||
Common Stock | |||
Payment of stock issuance costs | $ 1,780 | $ 827 | |
Common Stock | Public Offering [Member] | |||
Stock issued new, shares | 10,294,445 | ||
Proceeds from sale of common stock | $ 23,163 | ||
Payment of stock issuance costs | $ 1,669 | ||
Common Stock | AMI Sales Agreement [Member] | |||
Stock issued new, shares | 1,051,259 | 6,137,403 | |
Proceeds from sale of common stock | $ 4,304 | $ 18,246 | |
Common Stock | Equity Distribution Agreement [Member] | |||
Stock issued new, shares | 3,750,323 | ||
Proceeds from sale of common stock | $ 13,031 | ||
Warrants [Member] | |||
Warrants expired | 39,040 | ||
Warrants issued | 0 | ||
Warrants outstanding | 0 |
5.Benefit Plans (Details - Assu
5.Benefit Plans (Details - Assumptions) - Equity Option [Member] | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Risk-free interest rate | 2.81% | 2.21% | 1.32% |
Expected life (in years) | 5 years 6 months 25 days | 6 years 2 months 8 days | 6 years 1 month 13 days |
Expected volatility | 76.56% | 110.43% | 111.30% |
Expected dividend yield |
5. Benefit Plans (Details - Opt
5. Benefit Plans (Details - Option activity) - Equity Option [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Apr. 30, 2019USD ($)$ / sharesshares | |
Number of Options | |
Number of Options Outstanding, Beginning | shares | 3,597,738 |
Number of Options Granted | shares | 973,614 |
Number of Options Exercised | shares | (371,327) |
Number of Options Cancelled or Expired | shares | (925,810) |
Number of Options Outstanding, Ending | shares | 3,274,215 |
Exercisable and expected to vest | shares | 3,274,215 |
Exercisable at period end | shares | 1,932,527 |
Weighted Average Exercise Price | |
Weighted Average Exercise Price Outstanding, Beginning | $ 5.74 |
Weighted Average Exercise Price Granted | 5 |
Weighted Average Exercise Price Exercised | 3.45 |
Weighted Average Exercise Price Canceled | 11.28 |
Weighted Average Exercise Price Outstanding, Ending | 7.51 |
Weighted Average Exercise Price, Exercisable and expected to vest | 7.51 |
Weighted Average Exercise Price Exercisable, at period end | $ 9.45 |
Weighted Average Remaining Contractual Life (in years) | |
Weighted Average Remaining Contractual Life (in years) Outstanding | 5 years 6 months 10 days |
Weighted Average Remaining Contractual Life (in years) Vested and expected to vest | 5 years 6 months 10 days |
Weighted Average Remaining Contractual Life (in years) Exercisable, at period end | 3 years 10 months 14 days |
Aggregate Intrinsic Value | |
Aggregate Intrinsic Value Outstanding | $ | $ 1,238 |
Aggregate Intrinsic Value vested and expected to vest | $ | 1,238 |
Aggregate Intrinsic Value Exercisable at period end | $ | $ 700 |
Aggregate intrinsic value per share | $ 4.79 |
5. Benefit Plans (Details - Ass
5. Benefit Plans (Details - Assumptions ESPP) - Employee Stock Purchase Plan [Member] | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Risk-free interest rate | 2.26% | 1.10% | 0.46% |
Expected life (in years) | 6 months | 6 months | 6 months |
Expected volatility | 71.10% | 75.18% | 105.27% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
5. Benefit Plans (Details - Sha
5. Benefit Plans (Details - Share based compensation) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Share based compensation | $ 1,595 | $ 1,538 | $ 3,363 |
Cost of revenues [Member] | |||
Share based compensation | 474 | 378 | 108 |
Selling, general and administrative | |||
Share based compensation | 1,121 | 820 | 1,553 |
Discontinued operations | |||
Share based compensation | $ 0 | $ 340 | $ 1,702 |
5. Benefit Plans (Details Narra
5. Benefit Plans (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Cash received from stock options exercised | $ 1,278 | $ 752 | $ 31 |
Company matching contributions to 401(k) plan | $ 377 | $ 564 | $ 845 |
Employee Stock Purchase Plan [Member] | |||
Weighted average grant date fair value, other than options | $ 1.49 | $ 1.65 | $ 1.07 |
Stock issued during period, ESPP | 75,148 | 88,327 | 270,075 |
ESPO weighted average purchase price | $ 3.44 | $ 3.59 | $ 1.95 |
Stock Option [Member] | |||
Weighted-average grant date fair value of options granted | $ 3.30 | $ 3.50 | $ 2.86 |
Aggregate intrinsic value of stock options exercised | $ 547 | $ 173 | $ 11 |
Cash received from stock options exercised | 1,278 | $ 752 | $ 31 |
Unrecognized compensation costs related to non-vested stock options | $ 3,880 | ||
Unrecognized compensation cost weighted average vesting period | 2 years 8 months 12 days | ||
RSUs [Member] | |||
Unrecognized compensation cost weighted average vesting period | 3 years 4 months 2 days | ||
RSU's granted during period | 0 | ||
Unrecognized compensation cost related to non-vested RSUs | $ 733 | ||
Stock Incentive Plans [Member] | |||
Stock reserved for issuance | 7,246,713 | ||
Stock Incentive Plans [Member] | Options and RSU's [Member] | |||
Stock reserved for issuance | 3,474,590 | ||
Stock Incentive Plans [Member] | Future Grants [Member] | |||
Stock reserved for issuance | 3,790,123 | ||
Employee Stock Purchase Plan [Member] | |||
Stock reserved for issuance | 1,196,261 |
6. Income Taxes (Details - Prov
6. Income Taxes (Details - Provision for Income taxes) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal income taxes at statutory rate | $ (1,120) | $ (6,112) | $ 475 |
State income taxes | (48) | 155 | 309 |
Expiration and adjustments of deferred tax assets | 2,507 | 1,840 | 1,693 |
Change in valuation allowance | (2,480) | (57,599) | (2,616) |
Share-based compensation | 1,309 | 1,584 | 0 |
Other, net | (452) | 6 | 139 |
Tax Cuts and Jobs Act | 0 | 60,126 | 0 |
Income tax benefit | $ (284) | $ 0 | $ 0 |
6. Income Taxers (Details - Def
6. Income Taxers (Details - Deferred income taxes) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Income Tax Disclosure [Abstract] | ||
Net operating losses | $ 113,612 | $ 115,236 |
Share-based compensation | 3,416 | 4,828 |
Deferred revenue | 1,610 | 2,852 |
Deferred rent | 555 | 568 |
Other | 1,256 | 879 |
Total deferred tax assets | 120,449 | 124,363 |
Less valuation allowance | (119,516) | (123,555) |
Net deferred tax assets | 933 | 808 |
Deferred tax liabilities: | ||
Fixed assets | (933) | (808) |
Total deferred tax liabilities | (933) | (808) |
Net deferred tax assets | $ 0 | $ 0 |
6. Income Taxes (Details Narrat
6. Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Unrecognized tax benefits from uncertain tax positions | $ 0 | $ 0 | $ 0 |
Income tax penalties or interest | 0 | 0 | $ 0 |
Income tax penalties or interest accrued | $ 0 | $ 0 | |
U.S. corporate income tax rate | 21.00% | ||
Federal [Member] | |||
Net operating loss carry forward | $ 425,841 | ||
Operating loss carryforward expiration dates | 2020 through 2038 | ||
California [Member] | |||
Net operating loss carry forward | $ 273,581 | ||
Operating loss carryforward expiration dates | 2029 |
7. Net Loss per Common Share (D
7. Net Loss per Common Share (Details - Antidilutive shares) - shares | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Stock Options | |||
Dilutive effect of shares on diluted shares outstanding | 138,822 | 53,978 | 0 |
RSUs [Member] | |||
Dilutive effect of shares on diluted shares outstanding | 34,122 | 0 | 0 |
Employee Stock Purchase Plan [Member] | |||
Dilutive effect of shares on diluted shares outstanding | 10,589 | 1,972 | 45,767 |
Options, RSUs and ESPP [Member] | |||
Dilutive effect of shares on diluted shares outstanding | 183,533 | 55,950 | 45,767 |
7. Net Loss per Common Share _2
7. Net Loss per Common Share (Details - Antidilutive shares, conversion price) - shares | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
RSUs [Member] | |||
Dilutive effect of shares on diluted shares outstanding | 34,122 | 0 | 0 |
If Converted Method [Member] | Stock Options [Member] | |||
Dilutive effect of shares on diluted shares outstanding | 2,712,454 | 3,636,699 | 4,156,421 |
If Converted Method [Member] | RSUs [Member] | |||
Dilutive effect of shares on diluted shares outstanding | 33,532 | 0 | 0 |
If Converted Method [Member] | Warrants | |||
Dilutive effect of shares on diluted shares outstanding | 12,942 | 39,040 | 39,040 |
If Converted Method [Member] | Series E Preferred Stock [Member] | |||
Dilutive effect of shares on diluted shares outstanding | 1,978,783 | 1,978,783 | 1,955,588 |
If Converted Method [Member] | Option, RSUs, Warrants, Series E Preferred Stock [Member] | |||
Dilutive effect of shares on diluted shares outstanding | 4,737,711 | 5,654,522 | 6,151,049 |
9. Restructuring Charges (Detai
9. Restructuring Charges (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Oct. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Aggregate restructuring costs | $ 0 | $ 1,258 | $ 0 | |
Restructuring [Member] | ||||
Workforce reduction | We reduced our overall workforce by 57 employees | |||
Aggregate restructuring costs | $ 1,588 | |||
Restructuring [Member] | Contract Manufacturing Services Segment [Member] | ||||
Aggregate restructuring costs | 1,258 | |||
Restructuring [Member] | Research and Development Segment [Member] | ||||
Aggregate restructuring costs | $ 330 |
10. Sale of Research and Deve_3
10. Sale of Research and Development Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Apr. 30, 2019 | [1],[2],[3] | Jan. 31, 2019 | [1],[2],[3] | Oct. 31, 2018 | [1],[2],[3] | Jul. 31, 2018 | [1],[2],[3] | Apr. 30, 2018 | [1],[2],[3] | Jan. 31, 2018 | [1],[2],[3] | Oct. 31, 2017 | [1],[2],[3] | Jul. 31, 2017 | [1],[2],[3] | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Gain on sale of research and development assets before income taxes | $ 1,000 | $ 8,000 | $ 0 | ||||||||||||||||
Income (loss) from discontinued operations, net of tax | $ 102 | $ 0 | $ 739 | $ 0 | $ 9,154 | $ (2,076) | $ (4,323) | $ (4,005) | 841 | (1,250) | (29,552) | ||||||||
Discontinued Operations [Member] [Default Label] | |||||||||||||||||||
License revenue | 0 | 25 | 0 | ||||||||||||||||
Total operating expenses | 0 | 9,275 | 29,552 | ||||||||||||||||
Other income | 125 | 0 | 0 | ||||||||||||||||
Gain on sale of research and development assets before income taxes | 1,000 | 8,000 | 0 | ||||||||||||||||
Income tax expense | 284 | 0 | 0 | ||||||||||||||||
Income (loss) from discontinued operations, net of tax | 841 | (1,250) | (29,552) | ||||||||||||||||
Discontinued Operations [Member] [Default Label] | Research and Development Expense [Member] | |||||||||||||||||||
Total operating expenses | 0 | 6,782 | 27,992 | ||||||||||||||||
Discontinued Operations [Member] [Default Label] | Selling, General and Administrative Expenses [Member] | |||||||||||||||||||
Total operating expenses | 0 | 2,163 | 1,560 | ||||||||||||||||
Discontinued Operations [Member] [Default Label] | Restructuring Charges [Member] | |||||||||||||||||||
Total operating expenses | $ 0 | $ 330 | $ 0 | ||||||||||||||||
[1] | For all periods presented, the operating results of our former research and development segment are reported as income (loss) from discontinued operations, net of tax (Note 1). | ||||||||||||||||||
[2] | Income from discontinued operations, net of tax, for the quarters ended October 31, 2018 and April 30, 2018 include a gain on sale of research and development assets before tax of $1,000 and $8,000, respectively (Note 10). | ||||||||||||||||||
[3] | On May 1, 2018, we adopted ASC 606 using the modified retrospective method applied to all contracts not completed as of May 1, 2018 (Note 2). Under the modified retrospective method, results for the reporting periods beginning on or after May 1, 2018 are presented in accordance with ASC 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards that were in effect prior to May 1, 2018. |
10. Sale of Research and Deve_4
10. Sale of Research and Development Assets (Details - Balance Sheet) - USD ($) $ in Thousands | Apr. 30, 2019 | Apr. 30, 2018 |
Assets: | ||
Total assets of discontinued operations | $ 0 | $ 5,000 |
Liabilities: | ||
Accrued payroll and related costs | $ 3,540 | 2,564 |
Discontinued Operations [Member] [Default Label] | ||
Assets: | ||
Other receivables | 5,000 | |
Total assets of discontinued operations | 5,000 | |
Liabilities: | ||
Accounts payable | 32 | |
Accrued clinical trial and related fees | 3,613 | |
Accrued payroll and related costs | 614 | |
Other liabilities | 291 | |
Total liabilities of discontinued operations | $ 4,550 |
10. Sale of Research and Deve_5
10. Sale of Research and Development Assets (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Gain on sale of assets | $ (127) | $ (1,692) | $ (1) |
Discontinued operations | |||
Gain on sale of assets | $ 1,000 | $ 8,000 |
11. Selected Quarterly Financ_3
11. Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | ||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Revenues | [1] | $ 17,055 | $ 13,781 | $ 10,178 | $ 12,589 | $ 6,943 | $ 6,819 | $ 12,782 | $ 27,077 | |||||||||||
Gross profit | 3,648 | [1] | 2,050 | [1] | 334 | [1] | 1,192 | [1] | (1,961) | [1] | (4,132) | [1] | (3,460) | [1] | 6,629 | [1] | $ 7,224 | $ (2,924) | $ 19,371 | |
Income (loss) from continuing operations | [1] | 234 | (1,139) | (2,190) | (1,961) | (6,134) | (8,928) | (8,301) | 2,800 | |||||||||||
Income (loss) from discontinued operations | 102 | [1],[2],[3] | 0 | [1],[2],[3] | 739 | [1],[2],[3] | 0 | [1],[2],[3] | 9,154 | [1],[2],[3] | (2,076) | [1],[2],[3] | (4,323) | [1],[2],[3] | (4,005) | [1],[2],[3] | 841 | (1,250) | (29,552) | |
Net income (loss) | 336 | [1] | (1,139) | [1] | (1,451) | [1] | (1,961) | [1] | 3,020 | [1] | (11,004) | [1] | (12,624) | [1] | (1,205) | [1] | (4,215) | (21,813) | (28,159) | |
Net income (loss) attributable to common stockholders | $ (1,106) | [1] | $ (2,581) | [1] | $ (2,893) | [1] | $ (3,403) | [1] | $ 1,578 | [1] | $ (12,446) | [1] | $ (14,066) | [1] | $ (2,647) | [1] | $ (8,901) | $ (26,499) | $ (32,799) | |
Basic and diluted net income (loss) per common share attributable to common stockholders - Continuing operations | $ (0.02) | [4] | $ (0.05) | [4] | $ (0.06) | [4] | $ (0.06) | [4] | $ (0.14) | [4] | $ (0.23) | [4] | $ (0.21) | [4] | $ 0.03 | [4] | $ (0.17) | $ (0.53) | $ (0.09) | |
Basic and diluted net income (loss) per common share attributable to common stockholders - Discontinued operations | 0.01 | 0.17 | (0.05) | (0.10) | (0.09) | 0.01 | (0.03) | (0.79) | ||||||||||||
Net loss per share attributable to common stockholders | $ (0.02) | $ (0.05) | $ (0.05) | $ (0.05) | $ 0.03 | $ (0.28) | $ (0.31) | $ (0.06) | $ (0.16) | $ (0.56) | $ (0.88) | |||||||||
[1] | On May 1, 2018, we adopted ASC 606 using the modified retrospective method applied to all contracts not completed as of May 1, 2018 (Note 2). Under the modified retrospective method, results for the reporting periods beginning on or after May 1, 2018 are presented in accordance with ASC 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards that were in effect prior to May 1, 2018. | |||||||||||||||||||
[2] | For all periods presented, the operating results of our former research and development segment are reported as income (loss) from discontinued operations, net of tax (Note 1). | |||||||||||||||||||
[3] | Income from discontinued operations, net of tax, for the quarters ended October 31, 2018 and April 30, 2018 include a gain on sale of research and development assets before tax of $1,000 and $8,000, respectively (Note 10). | |||||||||||||||||||
[4] | Basic and diluted net income (loss) per common share attributable to common stockholders calculations for each of the quarters are based on the basic and diluted weighted average common shares outstanding for each period. As such, the sum of the quarters may not necessarily equal the basic and diluted net income (loss) per common share amount for the fiscal year. |