Cover
Cover - shares | 6 Months Ended | |
Oct. 31, 2023 | Nov. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Oct. 31, 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --04-30 | |
Entity File Number | 001-32839 | |
Entity Registrant Name | AVID BIOSERVICES, INC. | |
Entity Central Index Key | 0000704562 | |
Entity Tax Identification Number | 95-3698422 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 14191 Myford Road | |
Entity Address, City or Town | Tustin | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92780 | |
City Area Code | (714) | |
Local Phone Number | 508-6100 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | CDMO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 63,239,238 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Oct. 31, 2023 | Apr. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 31,424 | $ 38,542 |
Accounts receivable, net | 13,379 | 18,298 |
Contract assets | 10,847 | 9,609 |
Inventory | 38,583 | 43,908 |
Prepaid expenses and other current assets | 9,972 | 2,094 |
Total current assets | 104,205 | 112,451 |
Property and equipment, net | 187,174 | 177,369 |
Operating lease right-of-use assets | 41,973 | 42,772 |
Deferred tax assets | 116,617 | 113,639 |
Other assets | 4,673 | 4,473 |
Restricted cash | 0 | 350 |
Total assets | 454,642 | 451,054 |
Current liabilities: | ||
Accounts payable | 22,784 | 24,593 |
Accrued compensation and benefits | 4,244 | 8,780 |
Contract liabilities | 46,437 | 37,352 |
Current portion of operating lease liabilities | 1,263 | 1,358 |
Other current liabilities | 2,209 | 1,626 |
Total current liabilities | 76,937 | 73,709 |
Convertible senior notes, net | 141,154 | 140,623 |
Operating lease liabilities, less current portion | 45,036 | 45,690 |
Finance lease liabilities, less current portion | 7,840 | 1,562 |
Total liabilities | 270,967 | 261,584 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued and outstanding at respective dates | 0 | 0 |
Common stock, $0.001 par value; 150,000 shares authorized; 63,234 and 62,692 shares issued and outstanding at respective dates | 63 | 63 |
Additional paid-in capital | 626,031 | 620,224 |
Accumulated deficit | (442,419) | (430,817) |
Total stockholders’ equity | 183,675 | 189,470 |
Total liabilities and stockholders’ equity | $ 454,642 | $ 451,054 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Oct. 31, 2023 | Apr. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 63,234 | 62,692 |
Common stock, shares outstanding | 63,234 | 62,692 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 25,395 | $ 34,757 | $ 63,121 | $ 71,449 |
Cost of revenues | 30,060 | 30,610 | 63,686 | 58,185 |
Gross profit (loss) | (4,665) | 4,147 | (565) | 13,264 |
Operating expenses: | ||||
Selling, general and administrative | 6,557 | 6,831 | 12,820 | 13,213 |
Total operating expenses | 6,557 | 6,831 | 12,820 | 13,213 |
Operating income (loss) | (11,222) | (2,684) | (13,385) | 51 |
Interest expense | (805) | (703) | (1,580) | (1,221) |
Other income, net | 140 | 145 | 398 | 195 |
Net loss before income taxes | (11,887) | (3,242) | (14,567) | (975) |
Income tax benefit | (2,378) | (2,086) | (2,965) | (1,383) |
Net income (loss) | (9,509) | (1,156) | (11,602) | 408 |
Comprehensive income (loss) | $ (9,509) | $ (1,156) | $ (11,602) | $ 408 |
Net income (loss) per share: | ||||
Basic | $ (0.15) | $ (0.02) | $ (0.18) | $ 0.01 |
Diluted | $ (0.15) | $ (0.02) | $ (0.18) | $ 0.01 |
Weighted average common shares outstanding: | ||||
Basic | 63,149 | 62,204 | 62,994 | 62,054 |
Diluted | 63,149 | 62,204 | 62,994 | 63,574 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Apr. 30, 2022 | $ 62 | $ 605,841 | $ (431,377) | $ 174,526 |
Beginning balance, shares at Apr. 30, 2022 | 61,807 | |||
Common stock issued under equity compensation plans | 1,578 | 1,578 | ||
Common stock issued under equity compensation plans, shares | 501 | |||
Stock-based compensation expense | 4,683 | 4,683 | ||
Net income | 408 | 408 | ||
Ending balance, value at Oct. 31, 2022 | $ 62 | 612,102 | (430,969) | 181,195 |
Ending balance, shares at Oct. 31, 2022 | 62,308 | |||
Beginning balance, value at Jul. 31, 2022 | $ 62 | 608,750 | (429,813) | 178,999 |
Beginning balance, shares at Jul. 31, 2022 | 62,165 | |||
Common stock issued under equity compensation plans | 566 | 566 | ||
Common stock issued under equity compensation plans, shares | 143 | |||
Stock-based compensation expense | 2,786 | 2,786 | ||
Net income | (1,156) | (1,156) | ||
Ending balance, value at Oct. 31, 2022 | $ 62 | 612,102 | (430,969) | 181,195 |
Ending balance, shares at Oct. 31, 2022 | 62,308 | |||
Beginning balance, value at Apr. 30, 2023 | $ 63 | 620,224 | (430,817) | 189,470 |
Beginning balance, shares at Apr. 30, 2023 | 62,692 | |||
Common stock issued under equity compensation plans | 998 | 998 | ||
Common stock issued under equity compensation plans, shares | 542 | |||
Stock-based compensation expense | 4,809 | 4,809 | ||
Net income | (11,602) | (11,602) | ||
Ending balance, value at Oct. 31, 2023 | $ 63 | 626,031 | (442,419) | 183,675 |
Ending balance, shares at Oct. 31, 2023 | 63,234 | |||
Beginning balance, value at Jul. 31, 2023 | $ 63 | 623,445 | (432,910) | 190,598 |
Beginning balance, shares at Jul. 31, 2023 | 63,111 | |||
Common stock issued under equity compensation plans | 120 | 120 | ||
Common stock issued under equity compensation plans, shares | 123 | |||
Stock-based compensation expense | 2,466 | 2,466 | ||
Net income | (9,509) | (9,509) | ||
Ending balance, value at Oct. 31, 2023 | $ 63 | $ 626,031 | $ (442,419) | $ 183,675 |
Ending balance, shares at Oct. 31, 2023 | 63,234 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (11,602) | $ 408 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 5,433 | 3,409 |
Stock-based compensation | 4,809 | 4,683 |
Amortization of debt issuance costs | 639 | 520 |
Deferred income taxes | (2,978) | (1,565) |
Loss on disposal of property and equipment | 46 | 70 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 4,919 | (33) |
Contract assets | (1,238) | (1,159) |
Inventory | 5,325 | (12,999) |
Prepaid expenses and other assets | (7,909) | (127) |
Accounts payable | 4,344 | 5,346 |
Accrued compensation and benefits | (4,536) | (2,411) |
Contract liabilities | 8,808 | (5,352) |
Other accrued expenses and liabilities | (239) | 439 |
Net cash provided by (used in) operating activities | 5,821 | (8,771) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (21,437) | (41,432) |
Net cash used in investing activities | (21,437) | (41,432) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock under equity compensation plans | 998 | 1,578 |
Proceeds from finance lease | 7,412 | 0 |
Principal payments on finance lease | (262) | (249) |
Net cash provided by financing activities | 8,148 | 1,329 |
Net decrease in cash, cash equivalents and restricted cash | (7,468) | (48,874) |
Cash, cash equivalents and restricted cash, beginning of period | 38,892 | 126,516 |
Cash, cash equivalents and restricted cash, end of period | 31,424 | 77,642 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 882 | 438 |
Cash paid for income taxes | 14 | 220 |
Supplemental disclosures of non-cash investing activities: | ||
Unpaid purchases of property and equipment | $ 7,972 | $ 8,478 |
Description of Company and Basi
Description of Company and Basis of Presentation | 6 Months Ended |
Oct. 31, 2023 | |
Accounting Policies [Abstract] | |
Description of Company and Basis of Presentation | Note 1 – Description of Company and Basis of Presentation We are a dedicated contract development and manufacturing organization (“CDMO”) that provides a comprehensive range of services from process development to Current Good Manufacturing Practices (“CGMP”) clinical and commercial manufacturing of biologics for the biotechnology and biopharmaceutical industries. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) related to quarterly reports on Form 10-Q, and accordingly, they do not include all the information and disclosures required by U.S. GAAP for annual financial statements. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2023, as filed with the SEC on June 21, 2023. The unaudited financial information for the interim periods presented herein reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial condition and results of operations for the periods presented, with such adjustments consisting only of normal recurring adjustments. Results of operations for interim periods covered by this Quarterly Report on Form 10-Q may not necessarily be indicative of results of operations for the full fiscal year or any other interim period. The unaudited condensed consolidated financial statements include the accounts of Avid Bioservices, Inc. and its subsidiary. All intercompany accounts and transactions among the consolidated entities have been eliminated in the unaudited condensed consolidated financial statements. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts, as well as disclosures of commitments and contingencies in the financial statements and accompanying notes. Actual results could differ materially from those estimates and assumptions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Oct. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Information regarding our significant accounting policies is contained in Note 2, “Summary of Significant Accounting Policies,” of the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended April 30, 2023. Revenue Recognition Revenue recognized from services provided under our customer contracts is disaggregated into manufacturing and process development revenue streams. Manufacturing revenue Manufacturing revenue generally represents revenue from the manufacturing of customer products recognized over time utilizing an input method that compares the cost of cumulative work-in-process to date to the most current estimates for the entire cost of the performance obligation. Under a manufacturing contract, a quantity of manufacturing runs are ordered at a specified scale with prescribed dates, where the product is manufactured according to the customer’s specifications and typically includes only one performance obligation. Each manufacturing run represents a distinct service that is sold separately and has stand-alone value to the customer. The products are manufactured exclusively for a specific customer and have no alternative use. The customer retains control of its product during the entire manufacturing process and can make changes to the process or specifications at its request. Under these agreements, we are entitled to consideration for progress to date that includes an element of profit margin. Process development revenue Process development revenue generally represents revenue from services associated with the custom development of a manufacturing process and analytical methods for a customer’s product. Process development revenue is recognized over time utilizing an input method that compares the cost of cumulative work-in-process to date to the most current estimates for the entire cost of the performance obligation. Under a process development contract, the customer owns the product details and process, which has no alternative use. These process development projects are customized to each customer to meet its specifications and typically includes only one performance obligation. Each process represents a distinct service that is sold separately and has stand-alone value to the customer. The customer also retains control of its product as the product is being created or enhanced by our services and can make changes to its process or specifications upon request. Under these agreements, we are entitled to consideration for progress to date that includes an element of profit margin. The following table summarizes our revenue streams (in thousands): Schedule of revenues Three Months Ended October 31, Six Months Ended October 31, 2023 2022 2023 2022 Manufacturing revenues $ 20,128 $ 27,614 $ 53,548 $ 59,095 Process development revenues 5,267 7,143 9,573 12,354 Total revenues $ 25,395 $ 34,757 $ 63,121 $ 71,449 The timing of revenue recognition, billings and cash collections results in billed accounts receivable, contract assets (unbilled receivables), and contract liabilities (customer deposits and deferred revenue). Contract assets are recorded when our right to consideration is conditioned on something other than the passage of time. Contract assets are reclassified to accounts receivable on the consolidated balance sheet when our rights become unconditional. Contract liabilities represent customer deposits and deferred revenue billed and/or received in advance of our fulfillment of performance obligations. Contract liabilities convert to revenue as we perform our obligations under the contract. During the three and six months ended October 31, 2023, we recognized revenue of $ 4 20.8 During the three and six months ended October 31, 2022, we recognized revenue of $ 8.3 26.9 The transaction price for services provided under our customer contracts reflects our best estimates of the amount of consideration to which we are entitled in exchange for providing goods and services to our customers. For contracts with multiple performance obligations, we allocate transaction price to each performance obligation identified in a contract on a relative standalone selling price basis. For contracts in which we receive noncash consideration such as in the form of a customer’s equity securities, we utilize the quoted market price for such noncash consideration to determine the transaction price. We generally determine relative standalone selling prices based on the price observed in the customer contract for each distinct performance obligation. If observable standalone selling prices are not available, we may estimate the applicable standalone selling price based on the pricing of other comparable services or on a price that we believe the market is willing to pay for the applicable service. In determining the transaction price, we also considered the different sources of variable consideration including, but not limited to, discounts, credits, refunds, price concessions or other similar items. We have included in the transaction price some or all of an amount of variable consideration, utilizing the most likely method, only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The actual amount of consideration ultimately received may differ. In addition, our customer contracts generally include provisions entitling us to a cancellation or postponement fee when a customer cancels or postpones its commitments prior to our initiation of services, therefore not utilizing their reserved capacity. The determination of such cancellation and postponement fees are based on the terms stated in the related customer contract but are generally considered substantive for accounting purposes and create an enforceable right and obligation due to us when the cancellation or postponement occurs. Accordingly, we recognize such fees, subject to variable consideration, as revenue upon the cancellation or postponement date utilizing the most likely method. Management may be required to exercise judgement in estimating revenue to be recognized. Judgement is required in identifying performance obligations, estimating the transaction price, estimating the stand-alone selling prices of identified performance obligations, estimating variable consideration, and estimating the progress towards the satisfaction of performance obligations. If actual results in the future vary from our estimates, the estimates will be adjusted, which will affect revenues in the period that such variances become known. During the three and six months ended October 31, 2023, changes in estimates for variable consideration resulted in a decrease in revenues of $ 1.8 3.2 We apply the practical expedient available under ASC 606 that permits us not to disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. As of October 31, 2023, we 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 as incurred and included in selling, general and administrative expense in the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss). Restricted Cash Under the terms of an operating lease related to one of our non-manufacturing facilities that was primarily utilized for office space (Note 4), we were required to maintain a letter of credit as collateral during the term of the lease. As of October 31, 2023, no restricted cash remained pledged as collateral for the letter of credit as the associated operating lease has expired. As of April 30, 2023, restricted cash of $ 0.4 The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets that sum to the total of the same amounts shown in the unaudited condensed consolidated statements of cash flows (in thousands): Schedule of cash October 31, 2023 April 30, 2023 October 31, 2022 April 30, 2022 Cash and cash equivalents $ 31,424 $ 38,542 $ 77,292 $ 126,166 Restricted cash – 350 350 350 Total cash, cash equivalents and restricted cash $ 31,424 $ 38,892 $ 77,642 $ 126,516 Accounts Receivable, Net Accounts receivable is primarily comprised of amounts owed to us for services provided under our customer contracts and are recorded at the invoiced amount net of an allowance for doubtful accounts, if necessary. We apply judgement in assessing the ultimate realization of our receivables, that includes an assessment of expected credit losses, and we estimate our allowance for doubtful accounts based on various factors, including our historical collection experience, aging of our customer receivable balances, current and future economic market conditions, and the financial condition of our customers. Based on our analysis of our accounts receivable balance as of October 31, 2023 and April 30, 2023, we determined an allowance for doubtful accounts of $ 1.6 0.5 Inventory Inventory consists of raw materials inventory and is valued at the lower of cost, determined by the first-in, first-out method, or net realizable value. We periodically review raw materials inventory for potential impairment and adjust inventory to its net realizable value based on the estimate of future use and reduce the carrying value of inventory as deemed necessary. Property and Equipment Property and equipment is recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related asset, which are generally as follows: Schedule of estimated useful lives of property Description Estimated Useful Life Leasehold improvements Shorter of estimated useful life or lease term Laboratory and manufacturing equipment 5 – 15 years Computer equipment and software 3 – 5 years Furniture, fixtures and office equipment 5 – 10 years Costs for property and equipment not yet placed into service have been capitalized as construction-in-progress. These costs are primarily related to equipment and leasehold improvements associated with our manufacturing facilities and will be depreciated in accordance with the above guidelines once placed into service. Interest costs incurred during construction of major capital projects are capitalized as construction-in-progress until the underlying asset is ready for its intended use, at which point the interest costs are amortized as depreciation expense over the life of the underlying asset. Interest capitalized as construction-in-progress was de minimis for the three months ended October 31, 2023, and $ 0.1 0.3 Schedule of property and equipment October 31, 2023 April 30, 2023 Leasehold improvements $ 101,310 $ 97,514 Laboratory and manufacturing equipment 43,336 35,501 Computer equipment and software 5,170 5,028 Furniture, fixtures and office equipment 1,910 1,681 Construction-in-progress 71,124 68,013 Total property and equipment, gross 222,850 207,737 Less: accumulated depreciation and amortization (35,676 ) (30,368 ) Total property and equipment, net $ 187,174 $ 177,369 Depreciation and amortization expense for the three and six months ended October 31, 2023 was $ 2.8 5.4 Depreciation and amortization expense for the three and six months ended October 31, 2022 was $ 1.8 3.4 Leases We determine if an arrangement is or contains a lease at inception. Our operating leases with a term greater than one year are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities and operating lease liabilities, less current portion in our consolidated balance sheets. ROU assets represent our right to use an underlying asset during the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date, based on the present value of lease payments over the lease term. In determining the net present value of lease payments, we use our incremental borrowing rate which represents an estimated rate of interest that we would have to pay to borrow equivalent funds on a collateralized basis at the lease commencement date. Our operating leases may include options to extend the lease which are included in the lease term when it is reasonably certain that we will exercise a renewal option. Operating lease expense is recognized on a straight-line basis over the expected lease term. Our finance leases with a term greater than one year are included as assets within property and equipment, net and a lease liability equal to the present value of the minimum lease payments is included in other current liabilities and finance lease liabilities, less current portion in our consolidated balance sheets. The present value of the finance lease payments is calculated using the implicit interest rate in the lease. Finance lease ROU assets are amortized on a straight-line basis over the expected useful life of the asset and the carrying amount of the lease liability is adjusted to reflect interest, which is recorded as interest expense. Leases with an initial term of 12 months or less are not recorded on our consolidated balance sheets and lease expense for these short-term leases is recognized on a straight-line basis over the lease term. We have also elected the practical expedient to not separate lease components from non-lease components. Impairment Long-lived assets are reviewed for impairment in accordance with authoritative guidance for impairment or disposal of long-lived assets. Long-lived assets are reviewed for events or changes in circumstances that indicate that their carrying value may not be recoverable. If such events or changes in circumstances arise, we compare the carrying amount of the long-lived assets to the estimated future undiscounted cash flows expected to be generated by the long-lived assets. If the long-lived assets are determined to be impaired, any excess of the carrying value of the long-lived assets over its estimated fair value is recognized as an impairment loss. For the six months ended October 31, 2023 and 2022, there were no indicators of impairment of the value of our long-lived assets and no cumulative impairment losses were recognized as of October 31, 2023. Stock-Based Compensation We account for stock options, restricted stock units, performance stock units and other stock-based awards granted under our equity compensation plans in accordance with the authoritative guidance of ASC 718, Compensation – Stock Compensation Debt Issuance Costs Debt issuance costs related to convertible senior notes are recorded as a deduction that is netted against the principal value of the debt and are amortized to interest expense using the effective interest method over the contractual term of the debt (Note 3). Debt issuance costs related to the revolving credit facility are included in prepaid expenses and other current assets in the consolidated balance sheet and are amortized to interest expense over the contractual term of the revolving credit facility (Note 3). Comprehensive Income (Loss) Comprehensive income (loss) is the change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) is equal to our net income (loss) for all periods presented. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance prioritizes the inputs used in measuring fair value into the following hierarchy: · Level 1 – Observable inputs, such as unadjusted quoted prices in active markets for identical assets or liabilities. · Level 2 – Observable inputs other than quoted prices included in Level 1, such as assets or liabilities whose values are based on quoted market prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. · Level 3 – Unobservable inputs that are supported by little or no market activity and significant to the overall fair value measurement of the assets or liabilities; therefore, requiring the company to develop its own valuation techniques and assumptions. As of October 31, 2023 and April 30, 2023, our Level 1 financial assets consisted of our cash equivalents invested in money market funds of $ 21.6 28.7 7.5 0 We consider the fair value of our senior convertible notes to be a Level 2 financial liability due to limited trading activity of the senior convertible notes (Note 3). We did not have any other Level 2 or Level 3 financial liabilities as of October 31, 2023 and April 30, 2023. Recently Adopted Accounting Standard In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments |
Debt
Debt | 6 Months Ended |
Oct. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 3 – Debt Convertible Senior Notes Due 2026 In March 2021, we issued $ 143.8 138.5 5.3 The Convertible Notes are senior unsecured obligations and accrue interest at a rate of 1.25 March 15, 2026 The initial conversion rate for the Convertible Notes is approximately 47.1403 shares of our common stock per $1,000 principal amount, which represents an initial conversion price of approximately $21.21 per share of our common stock. The conversion rate is subject to adjustments upon the occurrence of certain events in accordance with the terms of the Indenture. In addition, following certain corporate events that occur prior to the maturity date, we will, in certain circumstances, increase the conversion rate for a holder who elects to convert their Convertible Notes in connection with such a fundamental change, as defined in the Indenture. Holders of the Convertible Notes may convert their Convertible Notes at their option at any time prior to the close of business on the business day immediately preceding September 15, 2025, only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending July 31, 2021, if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price (as defined in the Indenture) per $1,000 principal amount of the Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the exchange rate on each such trading day; (3) if we call any or all of the Convertible Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; and (4) upon the occurrence of specified corporate events as described in the Indenture. On or after September 15, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders at their option may convert their Convertible Notes at any time, regardless of the foregoing circumstances. We may not redeem the Convertible Notes prior to March 20, 2024. On or after March 20, 2024, the Convertible Notes are redeemable for cash, whole or in part, at our option, if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If we undergo a fundamental change (as defined in the Indenture), holders may require us to repurchase for cash all or any portion of their Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding the redemption date. The Indenture contains customary terms and covenants, including that upon certain events of default occurring and continuing, the trustee or the holders of at least 25% in aggregate principal amount of the outstanding Convertible Notes may declare the entire principal of all the Convertible Notes plus accrued and unpaid interest to be immediately due and payable. As of October 31, 2023, the conditions allowing holders of the Convertible Notes to convert had not been met and, therefore, the Convertible Notes are classified as a long-term liability on the unaudited condensed consolidated balance sheets at October 31, 2023 and April 30, 2023. The net carrying amount of the Convertible Notes is as follows (in thousands): Schedule of net carrying amount of the debt component October 31, 2023 April 30, 2023 Principal $ 143,750 $ 143,750 Unamortized issuance costs (2,596 ) (3,127 ) Net carrying amount $ 141,154 $ 140,623 As of October 31, 2023, the estimated fair value of the Convertible Notes was approximately $ 116.9 The following table summarizes the interest expense recognized related to the Convertible Notes for the three and six months ended October 31, 2023 and 2022 (in thousands): Schedule of interest expense Three Months Ended October 31, Six Months Ended October 31, 2023 2022 2023 2022 Contractual interest expense $ 431 $ 411 $ 839 $ 635 Amortization of issuance costs 266 260 531 520 Total interest expense associated with Convertible Notes $ 697 $ 671 $ 1,370 $ 1,155 Capped Call Transactions In connection with the issuance of the Convertible Notes, we entered into privately negotiated capped call transactions (the “Capped Calls”) with certain financial institution counterparties (the “Option Counterparties”). We used $ 12.8 We evaluated the Capped Calls under ASC 815-10 and determined that they should be accounted for as a separate transaction from the Convertible Notes and that the Capped Calls met the criteria for equity classification. Therefore, the cost of $12.8 million to purchase the Capped Calls was recorded as a reduction to additional paid-in capital. The Capped Calls will not be subsequently remeasured as long as the conditions for equity classification continue to be met. As of October 31, 2023 and April 30, 2023, there were no conversions of our Convertible Notes, and therefore, there was no activity with respect to the Capped Calls. We believe the conditions for equity classification continue to be met as of October 31, 2023 and April 30, 2023. Revolving Credit Facility On March 14, 2023, we entered into a credit agreement with Bank of America, N.A., as administrative agent and letter of credit issuer (the “Credit Agreement”). The Credit Agreement provides for a revolving credit facility (the “Revolving Credit Facility”) in an amount equal to the lesser of (i) $50 million and (ii) a borrowing base calculated as the sum of (a) 80% of the value of certain of our eligible accounts receivable, plus (b) up to 100% of the value of eligible cash collateral. The Credit Agreement is secured by substantially all our assets. On October 27, 2023, we entered into Amendment No. 1 to the Credit Agreement which, among other things, (i) extends the maturity date of the Revolving Credit Facility to October 25, 2024, (ii) amends the applicable interest rate applied to loans under the Revolving Credit Facility as described below, and (iii) increases the aggregate amount of indebtedness we can incur at any one time for fixed or capital assets. Other than the foregoing, the material terms of the Credit Facility remain unchanged. As of October 31, 2023, there were no Loans under the Revolving Credit Facility will bear interest at either a term Secured Overnight Financing Rate (“SOFR”) rate for a specified interest period plus a SOFR adjustment (equal to 0.10%) plus a margin of 1.60% or base rate plus a margin of 0.60% at our option. Interest on any outstanding loans is due and payable monthly and the principal balance is due at maturity. In addition, we pay a quarterly unused revolving line facility fee of 0.25 The Credit Agreement includes certain customary affirmative and negative covenants, including limitations on mergers, consolidations and sales of assets, limitations on liens, limitations on certain restricted payments and investments, limitations on transactions with affiliates and limitations on incurring additional indebtedness. In addition, the Credit Agreement, as amended, requires maintenance of a minimum consolidated EBITDA, as defined in the Credit Agreement, of $ 15 The Credit Agreement, as amended, also provides for certain customary events of defaults, including, among others, failure to make payments, breach of representations and warranties, and default of covenants. |
Leases
Leases | 6 Months Ended |
Oct. 31, 2023 | |
Leases | |
Leases | Note 4 – Leases We lease certain office, manufacturing, laboratory and warehouse space located in Orange County, California under operating lease agreements. Our leased facilities have original lease terms ranging from 7 to 12 years, contain multi-year renewal options, and scheduled rent increases of 3% on either an annual or biennial basis. Multi-year renewal options were included in determining the right-of-use asset and lease liability for each of our leases as we considered it reasonably certain that we would exercise such renewal options. In addition, certain 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/or are being amortized over the shorter of the estimated useful life of the improvements or the remaining term of the lease. Certain of our operating facility leases require us to pay property taxes, insurance and common area maintenance. While these payments are not included as part of our lease liabilities, they are recognized as variable lease cost in the period they are incurred. We also lease certain manufacturing equipment under finance lease agreements that have terms ranging from 5 to 7 years. The components of our lease costs for the three and six months ended October 31, 2023 and 2022 were as follows (in thousands): Schedule of lease costs Three Months Ended October 31, Six Months Ended October 31, 2023 2022 2023 2022 Operating lease cost $ 1,150 $ 1,090 $ 2,290 $ 2,173 Variable lease cost 424 408 775 797 Short-term lease cost 31 197 67 327 Finance lease costs: Amortization of right-of-use assets 54 54 108 108 Interest on lease liabilities 25 33 52 66 Total lease cost $ 1,684 $ 1,782 $ 3,292 $ 3,471 Supplemental consolidated balance sheet and other information related to our leases as of October 31, 2023 and April 30, 2023 were as follows (in thousands, expect weighted average data): Schedule of balance sheet classification of leases Leases Classification October 31, 2023 April 30, 2023 Assets Operating Operating lease right-of-use assets $ 41,973 $ 42,772 Finance Property and equipment, net 9,803 2,529 Total leased assets $ 51,776 $ 45,301 Liabilities Current: Operating Current portion of operating lease liabilities $ 1,263 $ 1,358 Finance Other current liabilities 1,403 531 Non-current: Operating Operating lease liabilities, less current portion 45,036 45,690 Finance Finance lease liabilities, less current portion 7,840 1,562 Total lease liabilities $ 55,542 $ 49,141 Schedule of operating and finance leases Weighted average remaining lease term (years): Operating leases 16.2 16.6 Finance leases 6.2 3.7 Weighted average discount rate: Operating leases 6.0 6.0 Finance leases 6.4 5.3 Supplemental cash flow information related to our leases for the six months ended October 31, 2023 and 2022 were as follows (in thousands): Schedule of supplemental cash flow information related to leases Six Months Ended October 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,149 $ 2,063 Operating cash flows from finance leases 52 65 Financing cash flows from finance leases 262 249 As of October 31, 2023, the maturities of our lease liabilities, which includes those derived from lease renewal options that we considered it reasonably certain that we would exercise, were as follows (in thousands): Schedule of maturities of lease liabilities Fiscal Year Ending April 30, Operating Leases Finance Leases Total 2024 (remaining period) $ 1,990 $ 982 $ 2,972 2025 4,060 1,963 6,023 2026 4,167 1,963 6,130 2027 4,199 1,754 5,953 2028 4,036 1,334 5,370 Thereafter 56,418 3,336 59,754 Total lease payments $ 74,870 $ 11,332 $ 86,202 Less: imputed interest (28,571 ) (2,089 ) (30,660 ) Total lease liabilities $ 46,299 $ 9,243 $ 55,542 |
Equity Compensation Plans
Equity Compensation Plans | 6 Months Ended |
Oct. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Compensation Plans | Note 5 – Equity Compensation Plans Stock Incentive Plans As of October 31, 2023, we had an aggregate of 7,682,971 4,501,434 3,181,537 Stock Options The following summarizes our stock option transaction activity for the six months ended October 31, 2023: Schedule of stock option activity Stock Options Grant Date Weighted Average Exercise Price (in thousands) Outstanding at May 1, 2023 2,079 $6.76 Granted – $– Exercised (62) $7.65 Canceled or expired (16) $11.99 Outstanding at October 31, 2023 2,001 $6.69 Restricted Stock Units The following summarizes our RSUs transaction activity for the six months ended October 31, 2023: Schedule of RSU activity Shares Weighted Average Grant Date Fair Value (in thousands) Outstanding at May 1, 2023 1,006 $16.83 Granted 673 $14.00 Vested (274) $13.73 Forfeited (40) $16.98 Outstanding at October 31, 2023 1,365 $16.05 Performance Stock Units The Compensation Committee of the Board of Directors grants PSUs to our executives. The PSUs are subject to annual vesting over three consecutive fiscal year performance periods with the first one-third vesting on April 30 of the year following the grant date, and each successive one-third vesting on April 30 of the following two years respectively (each a “Performance Period”). Each PSU that vests represent the right to receive one share of our common stock. The number of shares that will vest for each Performance Period, if any, is based upon the attainment of certain predetermined financial metrics for each such Performance Period. Depending on the actual financial metrics achieved relative to the target financial metrics for such Performance Periods, the number of PSUs issued could range from 0% to 200% of the target amount. The number of granted shares included in the table below is based on a maximum 200% achievement of each financial metric during each Performance Period (the “Maximum Performance Target”). If a financial metric is achieved at a rate below the Maximum Performance Target, or is not achieved, the corresponding portions of the PSUs that do not vest are forfeited. The following summarizes our PSUs transaction activity for the six months ended October 31, 2023: Schedule of PSU activity Shares Weighted Average Grant Date Fair Value (in thousands) Outstanding at May 1, 2023 522 $19.70 Granted 613 $13.92 Vested – $– Forfeited – $– Outstanding at October 31, 2023 1,135 $16.58 Employee Stock Purchase Plan The Avid Bioservices, Inc. 2010 Employee Stock Purchase Plan (the “ESPP”) is a stockholder-approved plan under which employees can purchase shares of our common stock, based on a percentage of their compensation, subject to certain limits. The purchase price per share is equal to the lower of 85% of the fair market value of our common stock on the first trading day of the six-month offering period or on the last trading day of the six-month offering period. During the six months ended October 31, 2023, a total of 46,224 11.46 917,092 Stock-Based Compensation Stock-based compensation expense included in our unaudited condensed consolidated statements of income (loss) and comprehensive income (loss) for the three and six months ended October 31, 2023 and 2022 was comprised of the following (in thousands): Schedule of share-based compensation expense Three Months Ended October 31, Six Months Ended October 31, 2023 2022 2023 2022 Cost of revenues $ 1,107 $ 1,045 $ 2,061 $ 1,732 Selling, general and administrative 1,359 1,741 2,748 2,951 Total stock-based compensation $ 2,466 $ 2,786 $ 4,809 $ 4,683 As of October 31, 2023, the total estimated unrecognized compensation cost related to non-vested stock options and RSUs was $ 0.7 20.3 0.73 2.87 9.7 1.22 |
Deferred Compensation Plan
Deferred Compensation Plan | 6 Months Ended |
Oct. 31, 2023 | |
Retirement Benefits [Abstract] | |
Deferred Compensation Plan | Note 6 - Deferred Compensation Plan In July 2023, our Board of Directors approved and adopted the Avid Bioservices, Inc. Deferred Compensation Plan (the “DC Plan”). The DC Plan allows non-employee directors and certain highly compensated employees to defer a portion of their base compensation, cash bonuses, and certain restricted stock unit and performance stock unit awards. As of October 31, 2023, contributions to the DC Plan were not material and are included in accrued compensation and benefits on the unaudited condensed consolidated balance sheet at October 31, 2023. |
Income Taxes
Income Taxes | 6 Months Ended |
Oct. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7 – Income Taxes We are subject to taxation in the United States and various states jurisdictions in which we conduct our business. Our tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items arising in that quarter. On a quarterly basis, we update our estimate of the annual effective tax rate, and if the estimated annual tax rate changes, we make a cumulative adjustment in that quarter. The provision for income taxes recorded for the three and six months ended October 31, 2023 and 2022 differs from the U.S. federal statutory tax rate of 21% due primarily to the tax impact of stock-based compensation, non-deductible officers’ compensation, and transportation fringe benefits. For the three and six months ended October 31, 2023, we recorded an income tax (benefit) of $( 2.4 3.0 20.0 20.4 2.1 1.4 64.3 141.8 We have no no |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 6 Months Ended |
Oct. 31, 2023 | |
Net income (loss) per share: | |
Net Income (Loss) Per Common Share | Note 8 – Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed by dividing our net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing our net income (loss) 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, unvested PSUs, shares of common stock expected to be issued under our ESPP, and Convertible Notes. The potential dilutive effect of stock options, unvested RSUs, unvested PSUs, and shares of common stock expected to be issued under our ESPP 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 Convertible Notes is calculated using the if-converted method assuming the conversion of our Convertible Notes as of the earliest period reported or at the date of issuance, if later, but are excluded if their effect is anti-dilutive. A reconciliation of the numerators and the denominators of the basic and dilutive net income (loss) per common share computations are as follows (in thousands, except per share amounts): Schedule of earnings per share, basic and diluted Three Months Ended October 31, Six Months Ended October 31, 2023 2022 2023 2022 Numerator Net income (loss) $ (9,509 ) $ (1,156 ) $ (11,602 ) $ 408 Denominator Weighted average basic common shares outstanding 63,149 62,204 62,994 62,054 Effect of dilutive securities: Stock options – – – 1,294 RSUs, PSUs and ESPP – – – 226 Weighted average dilutive common shares outstanding 63,149 62,204 62,994 63,574 Net income (loss) per share: Basic $ (0.15 ) $ (0.02 ) $ (0.18 ) $ 0.01 Diluted $ (0.15 ) $ (0.02 ) $ (0.18 ) $ 0.01 The following table presents the potential dilutive securities excluded from the calculation of diluted net income (loss) per share for the periods presented as the effect of their inclusion would have been anti-dilutive (in thousands): Schedule of antidilutive shares Three Months Ended October 31, Six Months Ended October 31, 2023 2022 2023 2022 Stock options 877 1,404 962 51 RSUs, PSUs and ESPP 1,400 433 1,241 640 Convertible Notes 6,776 6,776 6,776 6,776 Total 9,053 8,613 8,979 7,467 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Oct. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 – Commitments and Contingencies In the ordinary course of business, we are at times subject to various legal proceedings and disputes. We make provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions, if any, are reviewed at least quarterly and adjusted to reflect the impact of any settlement negotiations, judicial and administrative rulings, advice of legal counsel, and other information and events pertaining to a particular case. We currently are not a party to any legal proceedings, the adverse outcome of which, in management’s opinion, individually or in the aggregate, would have a material adverse effect on our consolidated financial condition or results of operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Oct. 31, 2023 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue recognized from services provided under our customer contracts is disaggregated into manufacturing and process development revenue streams. Manufacturing revenue Manufacturing revenue generally represents revenue from the manufacturing of customer products recognized over time utilizing an input method that compares the cost of cumulative work-in-process to date to the most current estimates for the entire cost of the performance obligation. Under a manufacturing contract, a quantity of manufacturing runs are ordered at a specified scale with prescribed dates, where the product is manufactured according to the customer’s specifications and typically includes only one performance obligation. Each manufacturing run represents a distinct service that is sold separately and has stand-alone value to the customer. The products are manufactured exclusively for a specific customer and have no alternative use. The customer retains control of its product during the entire manufacturing process and can make changes to the process or specifications at its request. Under these agreements, we are entitled to consideration for progress to date that includes an element of profit margin. Process development revenue Process development revenue generally represents revenue from services associated with the custom development of a manufacturing process and analytical methods for a customer’s product. Process development revenue is recognized over time utilizing an input method that compares the cost of cumulative work-in-process to date to the most current estimates for the entire cost of the performance obligation. Under a process development contract, the customer owns the product details and process, which has no alternative use. These process development projects are customized to each customer to meet its specifications and typically includes only one performance obligation. Each process represents a distinct service that is sold separately and has stand-alone value to the customer. The customer also retains control of its product as the product is being created or enhanced by our services and can make changes to its process or specifications upon request. Under these agreements, we are entitled to consideration for progress to date that includes an element of profit margin. The following table summarizes our revenue streams (in thousands): Schedule of revenues Three Months Ended October 31, Six Months Ended October 31, 2023 2022 2023 2022 Manufacturing revenues $ 20,128 $ 27,614 $ 53,548 $ 59,095 Process development revenues 5,267 7,143 9,573 12,354 Total revenues $ 25,395 $ 34,757 $ 63,121 $ 71,449 The timing of revenue recognition, billings and cash collections results in billed accounts receivable, contract assets (unbilled receivables), and contract liabilities (customer deposits and deferred revenue). Contract assets are recorded when our right to consideration is conditioned on something other than the passage of time. Contract assets are reclassified to accounts receivable on the consolidated balance sheet when our rights become unconditional. Contract liabilities represent customer deposits and deferred revenue billed and/or received in advance of our fulfillment of performance obligations. Contract liabilities convert to revenue as we perform our obligations under the contract. During the three and six months ended October 31, 2023, we recognized revenue of $ 4 20.8 During the three and six months ended October 31, 2022, we recognized revenue of $ 8.3 26.9 The transaction price for services provided under our customer contracts reflects our best estimates of the amount of consideration to which we are entitled in exchange for providing goods and services to our customers. For contracts with multiple performance obligations, we allocate transaction price to each performance obligation identified in a contract on a relative standalone selling price basis. For contracts in which we receive noncash consideration such as in the form of a customer’s equity securities, we utilize the quoted market price for such noncash consideration to determine the transaction price. We generally determine relative standalone selling prices based on the price observed in the customer contract for each distinct performance obligation. If observable standalone selling prices are not available, we may estimate the applicable standalone selling price based on the pricing of other comparable services or on a price that we believe the market is willing to pay for the applicable service. In determining the transaction price, we also considered the different sources of variable consideration including, but not limited to, discounts, credits, refunds, price concessions or other similar items. We have included in the transaction price some or all of an amount of variable consideration, utilizing the most likely method, only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The actual amount of consideration ultimately received may differ. In addition, our customer contracts generally include provisions entitling us to a cancellation or postponement fee when a customer cancels or postpones its commitments prior to our initiation of services, therefore not utilizing their reserved capacity. The determination of such cancellation and postponement fees are based on the terms stated in the related customer contract but are generally considered substantive for accounting purposes and create an enforceable right and obligation due to us when the cancellation or postponement occurs. Accordingly, we recognize such fees, subject to variable consideration, as revenue upon the cancellation or postponement date utilizing the most likely method. Management may be required to exercise judgement in estimating revenue to be recognized. Judgement is required in identifying performance obligations, estimating the transaction price, estimating the stand-alone selling prices of identified performance obligations, estimating variable consideration, and estimating the progress towards the satisfaction of performance obligations. If actual results in the future vary from our estimates, the estimates will be adjusted, which will affect revenues in the period that such variances become known. During the three and six months ended October 31, 2023, changes in estimates for variable consideration resulted in a decrease in revenues of $ 1.8 3.2 We apply the practical expedient available under ASC 606 that permits us not to disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. As of October 31, 2023, we 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 as incurred and included in selling, general and administrative expense in the unaudited condensed consolidated statements of income (loss) and comprehensive income (loss). |
Restricted Cash | Restricted Cash Under the terms of an operating lease related to one of our non-manufacturing facilities that was primarily utilized for office space (Note 4), we were required to maintain a letter of credit as collateral during the term of the lease. As of October 31, 2023, no restricted cash remained pledged as collateral for the letter of credit as the associated operating lease has expired. As of April 30, 2023, restricted cash of $ 0.4 The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets that sum to the total of the same amounts shown in the unaudited condensed consolidated statements of cash flows (in thousands): Schedule of cash October 31, 2023 April 30, 2023 October 31, 2022 April 30, 2022 Cash and cash equivalents $ 31,424 $ 38,542 $ 77,292 $ 126,166 Restricted cash – 350 350 350 Total cash, cash equivalents and restricted cash $ 31,424 $ 38,892 $ 77,642 $ 126,516 |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable is primarily comprised of amounts owed to us for services provided under our customer contracts and are recorded at the invoiced amount net of an allowance for doubtful accounts, if necessary. We apply judgement in assessing the ultimate realization of our receivables, that includes an assessment of expected credit losses, and we estimate our allowance for doubtful accounts based on various factors, including our historical collection experience, aging of our customer receivable balances, current and future economic market conditions, and the financial condition of our customers. Based on our analysis of our accounts receivable balance as of October 31, 2023 and April 30, 2023, we determined an allowance for doubtful accounts of $ 1.6 0.5 |
Inventory | Inventory Inventory consists of raw materials inventory and is valued at the lower of cost, determined by the first-in, first-out method, or net realizable value. We periodically review raw materials inventory for potential impairment and adjust inventory to its net realizable value based on the estimate of future use and reduce the carrying value of inventory as deemed necessary. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related asset, which are generally as follows: Schedule of estimated useful lives of property Description Estimated Useful Life Leasehold improvements Shorter of estimated useful life or lease term Laboratory and manufacturing equipment 5 – 15 years Computer equipment and software 3 – 5 years Furniture, fixtures and office equipment 5 – 10 years Costs for property and equipment not yet placed into service have been capitalized as construction-in-progress. These costs are primarily related to equipment and leasehold improvements associated with our manufacturing facilities and will be depreciated in accordance with the above guidelines once placed into service. Interest costs incurred during construction of major capital projects are capitalized as construction-in-progress until the underlying asset is ready for its intended use, at which point the interest costs are amortized as depreciation expense over the life of the underlying asset. Interest capitalized as construction-in-progress was de minimis for the three months ended October 31, 2023, and $ 0.1 0.3 Schedule of property and equipment October 31, 2023 April 30, 2023 Leasehold improvements $ 101,310 $ 97,514 Laboratory and manufacturing equipment 43,336 35,501 Computer equipment and software 5,170 5,028 Furniture, fixtures and office equipment 1,910 1,681 Construction-in-progress 71,124 68,013 Total property and equipment, gross 222,850 207,737 Less: accumulated depreciation and amortization (35,676 ) (30,368 ) Total property and equipment, net $ 187,174 $ 177,369 Depreciation and amortization expense for the three and six months ended October 31, 2023 was $ 2.8 5.4 Depreciation and amortization expense for the three and six months ended October 31, 2022 was $ 1.8 3.4 |
Leases | Leases We determine if an arrangement is or contains a lease at inception. Our operating leases with a term greater than one year are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities and operating lease liabilities, less current portion in our consolidated balance sheets. ROU assets represent our right to use an underlying asset during the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date, based on the present value of lease payments over the lease term. In determining the net present value of lease payments, we use our incremental borrowing rate which represents an estimated rate of interest that we would have to pay to borrow equivalent funds on a collateralized basis at the lease commencement date. Our operating leases may include options to extend the lease which are included in the lease term when it is reasonably certain that we will exercise a renewal option. Operating lease expense is recognized on a straight-line basis over the expected lease term. Our finance leases with a term greater than one year are included as assets within property and equipment, net and a lease liability equal to the present value of the minimum lease payments is included in other current liabilities and finance lease liabilities, less current portion in our consolidated balance sheets. The present value of the finance lease payments is calculated using the implicit interest rate in the lease. Finance lease ROU assets are amortized on a straight-line basis over the expected useful life of the asset and the carrying amount of the lease liability is adjusted to reflect interest, which is recorded as interest expense. Leases with an initial term of 12 months or less are not recorded on our consolidated balance sheets and lease expense for these short-term leases is recognized on a straight-line basis over the lease term. We have also elected the practical expedient to not separate lease components from non-lease components. |
Impairment | Impairment Long-lived assets are reviewed for impairment in accordance with authoritative guidance for impairment or disposal of long-lived assets. Long-lived assets are reviewed for events or changes in circumstances that indicate that their carrying value may not be recoverable. If such events or changes in circumstances arise, we compare the carrying amount of the long-lived assets to the estimated future undiscounted cash flows expected to be generated by the long-lived assets. If the long-lived assets are determined to be impaired, any excess of the carrying value of the long-lived assets over its estimated fair value is recognized as an impairment loss. For the six months ended October 31, 2023 and 2022, there were no indicators of impairment of the value of our long-lived assets and no cumulative impairment losses were recognized as of October 31, 2023. |
Stock-Based Compensation | Stock-Based Compensation We account for stock options, restricted stock units, performance stock units and other stock-based awards granted under our equity compensation plans in accordance with the authoritative guidance of ASC 718, Compensation – Stock Compensation |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs related to convertible senior notes are recorded as a deduction that is netted against the principal value of the debt and are amortized to interest expense using the effective interest method over the contractual term of the debt (Note 3). Debt issuance costs related to the revolving credit facility are included in prepaid expenses and other current assets in the consolidated balance sheet and are amortized to interest expense over the contractual term of the revolving credit facility (Note 3). |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is the change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) is equal to our net income (loss) for all periods presented. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance prioritizes the inputs used in measuring fair value into the following hierarchy: · Level 1 – Observable inputs, such as unadjusted quoted prices in active markets for identical assets or liabilities. · Level 2 – Observable inputs other than quoted prices included in Level 1, such as assets or liabilities whose values are based on quoted market prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. · Level 3 – Unobservable inputs that are supported by little or no market activity and significant to the overall fair value measurement of the assets or liabilities; therefore, requiring the company to develop its own valuation techniques and assumptions. As of October 31, 2023 and April 30, 2023, our Level 1 financial assets consisted of our cash equivalents invested in money market funds of $ 21.6 28.7 7.5 0 We consider the fair value of our senior convertible notes to be a Level 2 financial liability due to limited trading activity of the senior convertible notes (Note 3). We did not have any other Level 2 or Level 3 financial liabilities as of October 31, 2023 and April 30, 2023. |
Recently Adopted Accounting Standard | Recently Adopted Accounting Standard In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Oct. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of revenues | Schedule of revenues Three Months Ended October 31, Six Months Ended October 31, 2023 2022 2023 2022 Manufacturing revenues $ 20,128 $ 27,614 $ 53,548 $ 59,095 Process development revenues 5,267 7,143 9,573 12,354 Total revenues $ 25,395 $ 34,757 $ 63,121 $ 71,449 |
Schedule of cash | Schedule of cash October 31, 2023 April 30, 2023 October 31, 2022 April 30, 2022 Cash and cash equivalents $ 31,424 $ 38,542 $ 77,292 $ 126,166 Restricted cash – 350 350 350 Total cash, cash equivalents and restricted cash $ 31,424 $ 38,892 $ 77,642 $ 126,516 |
Schedule of estimated useful lives of property | Schedule of estimated useful lives of property Description Estimated Useful Life Leasehold improvements Shorter of estimated useful life or lease term Laboratory and manufacturing equipment 5 – 15 years Computer equipment and software 3 – 5 years Furniture, fixtures and office equipment 5 – 10 years |
Schedule of property and equipment | Schedule of property and equipment October 31, 2023 April 30, 2023 Leasehold improvements $ 101,310 $ 97,514 Laboratory and manufacturing equipment 43,336 35,501 Computer equipment and software 5,170 5,028 Furniture, fixtures and office equipment 1,910 1,681 Construction-in-progress 71,124 68,013 Total property and equipment, gross 222,850 207,737 Less: accumulated depreciation and amortization (35,676 ) (30,368 ) Total property and equipment, net $ 187,174 $ 177,369 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Oct. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of net carrying amount of the debt component | Schedule of net carrying amount of the debt component October 31, 2023 April 30, 2023 Principal $ 143,750 $ 143,750 Unamortized issuance costs (2,596 ) (3,127 ) Net carrying amount $ 141,154 $ 140,623 |
Schedule of interest expense | Schedule of interest expense Three Months Ended October 31, Six Months Ended October 31, 2023 2022 2023 2022 Contractual interest expense $ 431 $ 411 $ 839 $ 635 Amortization of issuance costs 266 260 531 520 Total interest expense associated with Convertible Notes $ 697 $ 671 $ 1,370 $ 1,155 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Oct. 31, 2023 | |
Leases | |
Schedule of lease costs | Schedule of lease costs Three Months Ended October 31, Six Months Ended October 31, 2023 2022 2023 2022 Operating lease cost $ 1,150 $ 1,090 $ 2,290 $ 2,173 Variable lease cost 424 408 775 797 Short-term lease cost 31 197 67 327 Finance lease costs: Amortization of right-of-use assets 54 54 108 108 Interest on lease liabilities 25 33 52 66 Total lease cost $ 1,684 $ 1,782 $ 3,292 $ 3,471 |
Schedule of balance sheet classification of leases | Schedule of balance sheet classification of leases Leases Classification October 31, 2023 April 30, 2023 Assets Operating Operating lease right-of-use assets $ 41,973 $ 42,772 Finance Property and equipment, net 9,803 2,529 Total leased assets $ 51,776 $ 45,301 Liabilities Current: Operating Current portion of operating lease liabilities $ 1,263 $ 1,358 Finance Other current liabilities 1,403 531 Non-current: Operating Operating lease liabilities, less current portion 45,036 45,690 Finance Finance lease liabilities, less current portion 7,840 1,562 Total lease liabilities $ 55,542 $ 49,141 |
Schedule of operating and finance leases | Schedule of operating and finance leases Weighted average remaining lease term (years): Operating leases 16.2 16.6 Finance leases 6.2 3.7 Weighted average discount rate: Operating leases 6.0 6.0 Finance leases 6.4 5.3 |
Schedule of supplemental cash flow information related to leases | Schedule of supplemental cash flow information related to leases Six Months Ended October 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,149 $ 2,063 Operating cash flows from finance leases 52 65 Financing cash flows from finance leases 262 249 |
Schedule of maturities of lease liabilities | Schedule of maturities of lease liabilities Fiscal Year Ending April 30, Operating Leases Finance Leases Total 2024 (remaining period) $ 1,990 $ 982 $ 2,972 2025 4,060 1,963 6,023 2026 4,167 1,963 6,130 2027 4,199 1,754 5,953 2028 4,036 1,334 5,370 Thereafter 56,418 3,336 59,754 Total lease payments $ 74,870 $ 11,332 $ 86,202 Less: imputed interest (28,571 ) (2,089 ) (30,660 ) Total lease liabilities $ 46,299 $ 9,243 $ 55,542 |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 6 Months Ended |
Oct. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock option activity | Schedule of stock option activity Stock Options Grant Date Weighted Average Exercise Price (in thousands) Outstanding at May 1, 2023 2,079 $6.76 Granted – $– Exercised (62) $7.65 Canceled or expired (16) $11.99 Outstanding at October 31, 2023 2,001 $6.69 |
Schedule of RSU activity | Schedule of RSU activity Shares Weighted Average Grant Date Fair Value (in thousands) Outstanding at May 1, 2023 1,006 $16.83 Granted 673 $14.00 Vested (274) $13.73 Forfeited (40) $16.98 Outstanding at October 31, 2023 1,365 $16.05 |
Schedule of PSU activity | Schedule of PSU activity Shares Weighted Average Grant Date Fair Value (in thousands) Outstanding at May 1, 2023 522 $19.70 Granted 613 $13.92 Vested – $– Forfeited – $– Outstanding at October 31, 2023 1,135 $16.58 |
Schedule of share-based compensation expense | Schedule of share-based compensation expense Three Months Ended October 31, Six Months Ended October 31, 2023 2022 2023 2022 Cost of revenues $ 1,107 $ 1,045 $ 2,061 $ 1,732 Selling, general and administrative 1,359 1,741 2,748 2,951 Total stock-based compensation $ 2,466 $ 2,786 $ 4,809 $ 4,683 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Oct. 31, 2023 | |
Net income (loss) per share: | |
Schedule of earnings per share, basic and diluted | Schedule of earnings per share, basic and diluted Three Months Ended October 31, Six Months Ended October 31, 2023 2022 2023 2022 Numerator Net income (loss) $ (9,509 ) $ (1,156 ) $ (11,602 ) $ 408 Denominator Weighted average basic common shares outstanding 63,149 62,204 62,994 62,054 Effect of dilutive securities: Stock options – – – 1,294 RSUs, PSUs and ESPP – – – 226 Weighted average dilutive common shares outstanding 63,149 62,204 62,994 63,574 Net income (loss) per share: Basic $ (0.15 ) $ (0.02 ) $ (0.18 ) $ 0.01 Diluted $ (0.15 ) $ (0.02 ) $ (0.18 ) $ 0.01 |
Schedule of antidilutive shares | Schedule of antidilutive shares Three Months Ended October 31, Six Months Ended October 31, 2023 2022 2023 2022 Stock options 877 1,404 962 51 RSUs, PSUs and ESPP 1,400 433 1,241 640 Convertible Notes 6,776 6,776 6,776 6,776 Total 9,053 8,613 8,979 7,467 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details - Revenue) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Product Information [Line Items] | ||||
Revenues | $ 25,395 | $ 34,757 | $ 63,121 | $ 71,449 |
Manufacturing Revenue [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 20,128 | 27,614 | 53,548 | 59,095 |
Process Development Revenue [Member] | ||||
Product Information [Line Items] | ||||
Revenues | $ 5,267 | $ 7,143 | $ 9,573 | $ 12,354 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details - Cash) - USD ($) $ in Thousands | Oct. 31, 2023 | Apr. 30, 2023 | Oct. 31, 2022 | Apr. 30, 2022 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 31,424 | $ 38,542 | $ 77,292 | $ 126,166 |
Restricted cash | 0 | 350 | 350 | 350 |
Total cash, cash equivalents and restricted cash | $ 31,424 | $ 38,892 | $ 77,642 | $ 126,516 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details - Useful life) | 6 Months Ended |
Oct. 31, 2023 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | Shorter of estimated useful life or lease term |
Other Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 5 – 15 years |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 3 – 5 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 5 – 10 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details - Property and Equipment) - USD ($) $ in Thousands | Oct. 31, 2023 | Apr. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 222,850 | $ 207,737 |
Less: Accumulated depreciation and amortization | (35,676) | (30,368) |
Total property and equipment, net | 187,174 | 177,369 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 101,310 | 97,514 |
Manufactured Product, Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 43,336 | 35,501 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 5,170 | 5,028 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 1,910 | 1,681 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 71,124 | $ 68,013 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Apr. 30, 2023 | |
Accounting Policies [Abstract] | |||||
Revenue recognized | $ 4 | $ 8.3 | $ 20.8 | $ 26.9 | |
Change in revenue due to change in estimate | 1.8 | 3.2 | |||
Restricted cash | $ 0.4 | ||||
Allowance for doubtful accounts | 1.6 | 1.6 | 0.5 | ||
Capitalized Interest Costs, Including Allowance for Funds Used During Construction | 0.1 | 0.3 | |||
Depreciation and amortization expense | 2.8 | $ 1.8 | 5.4 | $ 3.4 | |
Cash equivalents | 21.6 | 21.6 | 28.7 | ||
Investment in equity securities | $ 7.5 | $ 7.5 | $ 0 |
Debt (Details - Debt component)
Debt (Details - Debt component) - Convertible Debt Carrying Amount [Member] - USD ($) $ in Thousands | Oct. 31, 2023 | Apr. 30, 2023 |
Debt Instrument [Line Items] | ||
Principal | $ 143,750 | $ 143,750 |
Unamortized issuance costs | (2,596) | (3,127) |
Net carrying amount | $ 141,154 | $ 140,623 |
Debt (Details - Interest expens
Debt (Details - Interest expense) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Short-Term Debt [Line Items] | ||||
Amortization of issuance costs | $ 639 | $ 520 | ||
Total interest expense associated with Convertible Notes | $ 805 | $ 703 | 1,580 | 1,221 |
Convertible Notes [Member] | ||||
Short-Term Debt [Line Items] | ||||
Contractual interest expense | 431 | 411 | 839 | 635 |
Amortization of issuance costs | 266 | 260 | 531 | 520 |
Total interest expense associated with Convertible Notes | $ 697 | $ 671 | $ 1,370 | $ 1,155 |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Mar. 14, 2023 | Mar. 31, 2021 | Oct. 31, 2023 | |
Debt Instrument [Line Items] | |||
Net proceeds from convertible notes | $ 12,800 | ||
Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||
Debt Instrument [Line Items] | |||
Revolving line facility fee | 0.25% | ||
Revolving Credit Facility [Member] | Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding loans | 0 | ||
Line of credit | $ 15,000 | ||
Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 143,800 | ||
Proceeds from convertible debt | 138,500 | ||
Debt issuance costs | $ 5,300 | ||
Interest rate | 1.25% | ||
Maturity date | Mar. 15, 2026 | ||
Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Fair value of the convertible notes | $ 116,900 |
Leases (Details - Components of
Leases (Details - Components of lease) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Leases | ||||
Operating lease cost | $ 1,150 | $ 1,090 | $ 2,290 | $ 2,173 |
Variable lease cost | 424 | 408 | 775 | 797 |
Short-term lease cost | 31 | 197 | 67 | 327 |
Finance lease costs: | ||||
Amortization of right-of-use assets | 54 | 54 | 108 | 108 |
Interest on lease liabilities | 25 | 33 | 52 | 66 |
Total lease cost | $ 1,684 | $ 1,782 | $ 3,292 | $ 3,471 |
Leases (Details - Operating lea
Leases (Details - Operating leases assets and liabilities) - USD ($) $ in Thousands | Oct. 31, 2023 | Apr. 30, 2023 |
Leases | ||
Operating lease right-of-use assets | $ 41,973 | $ 42,772 |
Finance Property and equipment, net | 9,803 | 2,529 |
Total leased assets | 51,776 | 45,301 |
Current portion of operating lease liabilities | 1,263 | 1,358 |
Finance other current liabilities | 1,403 | 531 |
Operating lease liabilities, less current portion | 45,036 | 45,690 |
Finance lease liabilities, less current portion | 7,840 | 1,562 |
Total lease liabilities | $ 55,542 | $ 49,141 |
Leases (Details - Operating and
Leases (Details - Operating and finance leases) | Oct. 31, 2023 | Apr. 30, 2023 |
Leases | ||
Weighted average remaining lease term, operating leases | 16 years 2 months 12 days | 16 years 7 months 6 days |
Weighted average remaining lease term, finance lease | 6 years 2 months 12 days | 3 years 8 months 12 days |
Weighted average discount rate, operating leases | 6% | 6% |
Weighted average discount rate, finance lease | 6.40% | 5.30% |
Leases (Details - Supplemental
Leases (Details - Supplemental cash flow information) - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 2,149 | $ 2,063 |
Operating cash flows from finance leases | 52 | 65 |
Financing cash flows from finance leases | $ 262 | $ 249 |
Leases (Details - Maturities of
Leases (Details - Maturities of Operating Lease Liabilities) $ in Thousands | Oct. 31, 2023 USD ($) |
2024 (remaining period) | $ 2,972 |
2025 | 6,023 |
2026 | 6,130 |
2027 | 5,953 |
2028 | 5,370 |
Thereafter | 59,754 |
Total lease payments | 86,202 |
Less: imputed interest | (30,660) |
Total lease liabilities | 55,542 |
Operating Lease [Member] | |
2024 (remaining period) | 1,990 |
2025 | 4,060 |
2026 | 4,167 |
2027 | 4,199 |
2028 | 4,036 |
Thereafter | 56,418 |
Total lease payments | 74,870 |
Less: imputed interest | (28,571) |
Total lease liabilities | 46,299 |
Finance Lease [Member] | |
2024 (remaining period) | 982 |
2025 | 1,963 |
2026 | 1,963 |
2027 | 1,754 |
2028 | 1,334 |
Thereafter | 3,336 |
Total lease payments | 11,332 |
Less: imputed interest | (2,089) |
Total lease liabilities | $ 9,243 |
Equity Compensation Plans (Deta
Equity Compensation Plans (Details - Option activity) - Equity Option [Member] shares in Thousands | 6 Months Ended |
Oct. 31, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Stock options, Outstanding beginning balance | shares | 2,079 |
Grant date weighted average exercise price, Outstanding beginning balance | $ / shares | $ 6.76 |
Stock options, Granted | shares | 0 |
Grant date weighted average exercise price, Granted | $ / shares | $ 0 |
Stock options, Exercised | shares | (62) |
Grant date weighted average exercise price, Exercised | $ / shares | $ 7.65 |
Stock options, Cancelled or expired | shares | (16) |
Grant date weighted average exercise price, Canceled or expired | $ / shares | $ 11.99 |
Stock options, Outstanding ending balance | shares | 2,001 |
Grant date weighted average exercise price, Outstanding ending balance | $ / shares | $ 6.69 |
Equity Compensation Plans (De_2
Equity Compensation Plans (Details - RSU Activity) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 6 Months Ended |
Oct. 31, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Outstanding beginning balance | shares | 1,006 |
Weighted average grant date fair value, Outstanding beginning balance | $ / shares | $ 16.83 |
RSUs shares, Granted | shares | 673 |
RSUs weighted average grant date fair value, Granted | $ / shares | $ 14 |
RSUs shares, Vested | shares | (274) |
RSUs weighted average grant date fair value, Vested | $ / shares | $ 13.73 |
RSUs shares, Forfeited | shares | (40) |
RSUs weighted average grant date fair value, Forfeited | $ / shares | $ 16.98 |
Outstanding ending balance | shares | 1,365 |
Weighted average grant date fair value, Outstanding ending balance | $ / shares | $ 16.05 |
Equity Compensation Plans (De_3
Equity Compensation Plans (Details - PSU Activity) - Performance Stock Units [Member] shares in Thousands | 6 Months Ended |
Oct. 31, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Outstanding beginning balance | shares | 522 |
Weighted average grant date fair value, Outstanding beginning balance | $ / shares | $ 19.70 |
PSUs shares, Granted | shares | 613 |
PSUs weighted average grant date fair value, Granted | $ / shares | $ 13.92 |
PSUs shares, Vested | shares | 0 |
PSUs weighted average grant date fair value, Vested | $ / shares | $ 0 |
PSUs shares, Forfeited | shares | 0 |
PSUs weighted average grant date fair value, Forfeited | $ / shares | $ 0 |
Outstanding ending balance | shares | 1,135 |
Weighted average grant date fair value, Outstanding ending balance | $ / shares | $ 16.58 |
Equity Compensation Plans (De_4
Equity Compensation Plans (Details - Share based compensation) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share based compensation | $ 2,466 | $ 2,786 | $ 4,809 | $ 4,683 |
Cost of Sales [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share based compensation | 1,107 | 1,045 | 2,061 | 1,732 |
Selling, General and Administrative Expenses [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share based compensation | $ 1,359 | $ 1,741 | $ 2,748 | $ 2,951 |
Equity Compensation Plans (De_5
Equity Compensation Plans (Details Narrative) $ / shares in Units, $ in Millions | 6 Months Ended |
Oct. 31, 2023 USD ($) $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Stock reserved for issuance | 7,682,971 |
Employee Stock Purchase Plan [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Stock reserved for issuance | 917,092 |
Stock issued during period, ESPP | 46,224 |
ESPP weighted average purchase price | $ / shares | $ 11.46 |
Options And Restricted Stock [Member] | Stock Incentive Plans [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Stock reserved for issuance | 4,501,434 |
Performance Stock Units [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Unrecognized compensation costs | $ | $ 9.7 |
Unrecognized compensation cost weighted average vesting period | 1 year 2 months 19 days |
Performance Stock Units [Member] | Stock Incentive Plans [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Stock reserved for issuance | 3,181,537 |
Equity Option [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Unrecognized compensation costs | $ | $ 0.7 |
Unrecognized compensation cost weighted average vesting period | 8 months 23 days |
Restricted Stock Units (RSUs) [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Unrecognized compensation costs | $ | $ 20.3 |
Unrecognized compensation cost weighted average vesting period | 2 years 10 months 13 days |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Apr. 30, 2023 | |
Income Tax Disclosure [Abstract] | |||||
Income tax benefit | $ 2,400 | $ 2,100 | $ 3,000 | $ 1,400 | |
Effective tax rate | 20% | 64.30% | 20.40% | 141.80% | |
Uncertain tax positions | $ 0 | $ 0 | $ 0 | ||
Accrued interest or penalties | $ 0 | $ 0 | $ 0 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share (Details - Reconciliation of per share) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Numerator | ||||
Net income (loss) | $ (9,509) | $ (1,156) | $ (11,602) | $ 408 |
Denominator | ||||
Weighted average basic common shares outstanding | 63,149 | 62,204 | 62,994 | 62,054 |
Effect of dilutive securities: | ||||
Stock options | 0 | 0 | 0 | 1,294 |
RSUs, PSUs and ESPP | 0 | 0 | 0 | 226 |
Weighted average dilutive common shares outstanding | 63,149 | 62,204 | 62,994 | 63,574 |
Net income (loss) per share: | ||||
Basic | $ (0.15) | $ (0.02) | $ (0.18) | $ 0.01 |
Diluted | $ (0.15) | $ (0.02) | $ (0.18) | $ 0.01 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share (Details - Antidilutive shares) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive effect of shares on diluted shares outstanding | 9,053 | 8,613 | 8,979 | 7,467 |
Equity Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive effect of shares on diluted shares outstanding | 877 | 1,404 | 962 | 51 |
R S Us P S Us And E S P P [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive effect of shares on diluted shares outstanding | 1,400 | 433 | 1,241 | 640 |
Convertible Notes [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive effect of shares on diluted shares outstanding | 6,776 | 6,776 | 6,776 | 6,776 |