Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Apr. 30, 2014	Jul. 07, 2014	Oct. 31, 2013
Document And Entity Information
Entity Registrant Name	PEREGRINE PHARMACEUTICALS INC
Entity Central Index Key	0000704562
Document Type	10-K
Document Period End Date	Apr. 30, 2014
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			$ 190,008,079
Entity Common Stock, Shares Outstanding		179,209,458
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2014

CONSOLIDATED BALANCE SHEETS (USD $)	Apr. 30, 2014	Apr. 30, 2013
CURRENT ASSETS:
Cash and cash equivalents	$ 77,490,000	$ 35,204,000
Trade and other receivables, net	1,332,000	1,662,000
Inventories	5,530,000	4,339,000
Prepaid expenses and other current assets, net	1,419,000	709,000
Total current assets	85,771,000	41,914,000
PROPERTY AND EQUIPMENT:
Leasehold improvements	1,538,000	1,383,000
Laboratory equipment	5,646,000	5,441,000
Furniture, fixtures, office equipment and software	2,679,000	2,627,000
Property and equipment, gross	9,863,000	9,451,000
Less accumulated depreciation and amortization	(7,416,000)	(6,773,000)
Property and equipment, net	2,447,000	2,678,000
Other assets	2,327,000	466,000
TOTAL ASSETS	90,545,000	45,058,000
CURRENT LIABILITIES:
Accounts payable	2,434,000	2,821,000
Accrued clinical trial and related fees	4,433,000	930,000
Accrued payroll and related costs	3,837,000	3,582,000
Deferred revenue, current portion	5,241,000	4,171,000
Customer deposits	5,760,000	8,059,000
Other current liabilities	502,000	998,000
Total current liabilities	22,207,000	20,561,000
Deferred revenue, less current portion	292,000	292,000
Other long-term liabilities	347,000	445,000
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred stock - $.001 par value; authorized 5,000,000 shares; issued and outstanding - 775,000 and nil, respectively	1,000	0
Common stock - $.001 par value; authorized 325,000,000 shares; issued and outstanding - 178,871,164 and 143,768,946, respectively	179,000	143,000
Additional paid-in-capital	470,785,000	391,521,000
Accumulated deficit	(403,266,000)	(367,904,000)
Total stockholders' equity	67,699,000	23,760,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 90,545,000	$ 45,058,000

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Apr. 30, 2014	Apr. 30, 2013
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	775,000	0
Preferred stock, shares outstanding	775,000	0
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	325,000,000	325,000,000
Common stock, shares issued	178,871,164	143,768,946
Common stock, shares outstanding	178,871,164	143,768,946

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $)	12 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2012
REVENUES:
Contract manufacturing revenue	$ 22,294,000	$ 21,333,000	$ 14,783,000
License revenue	107,000	350,000	450,000
Total revenues	22,401,000	21,683,000	15,233,000
COSTS AND EXPENSES:
Cost of contract manufacturing	13,110,000	12,595,000	10,153,000
Research and development	27,723,000	24,306,000	35,688,000
Selling, general and administrative	17,274,000	13,134,000	11,462,000
Total costs and expenses	58,107,000	50,035,000	57,303,000
LOSS FROM OPERATIONS	(35,706,000)	(28,352,000)	(42,070,000)
OTHER INCOME (EXPENSE):
Interest and other income	349,000	322,000	41,000
Interest and other expense	(5,000)	(54,000)	(90,000)
Loss on early extinguishment of debt	0	(1,696,000)	0
NET LOSS	(35,362,000)	(29,780,000)	(42,119,000)
COMPREHENSIVE LOSS	(35,362,000)	(29,780,000)	(42,119,000)
Series E preferred stock accumulated dividends	(401,000)	0	0
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ (35,763,000)	$ (29,780,000)	$ (42,119,000)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	161,579,649	120,370,333	83,572,761
BASIC AND DILUTED LOSS PER COMMON SHARE	$ (0.22)	$ (0.25)	$ (0.50)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $)	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Stockholders' Equity
Beginning Balance, Value at Apr. 30, 2011	$ 0	$ 70,000	$ 311,353,000	$ (296,005,000)	$ 15,418,000
Beginning Balance, Shares at Apr. 30, 2011	0	69,837,142
Stock issued for cash, net of issuance costs, Shares		31,126,182
Stock issued for cash, net of issuance costs, Value		31,000	33,148,000		33,179,000
Common stock issued under Employee Stock Purchase Plan, Shares		458,041
Common stock issued under Employee Stock Purchase Plan, Value			236,000		236,000
Share-based compensation			2,769,000		2,769,000
Net loss				(42,119,000)	(42,119,000)
Ending Balance, Value at Apr. 30, 2012	0	101,000	347,506,000	(338,124,000)	9,483,000
Ending Balance, Shares at Apr. 30, 2012	0	101,421,365
Stock issued for cash, net of issuance costs, Shares		41,184,043
Stock issued for cash, net of issuance costs, Value		41,000	39,481,000		39,522,000
Common stock issued upon exercise of options, Shares		118,555
Common stock issued upon exercise of options, Value		0	96,000		96,000
Common stock issued upon exercise of warrants, Shares		46,427
Common stock issued under Employee Stock Purchase Plan, Shares		998,556
Common stock issued under Employee Stock Purchase Plan, Value		1,000	533,000		534,000
Fair market value of warrants issued with notes payable			470,000		470,000
Share-based compensation			3,435,000		3,435,000
Net loss				(29,780,000)	(29,780,000)
Ending Balance, Value at Apr. 30, 2013		143,000	391,521,000	(367,904,000)	23,760,000
Ending Balance, Shares at Apr. 30, 2013		143,768,946
Stock issued for cash, net of issuance costs, Shares	775,000	33,527,369
Stock issued for cash, net of issuance costs, Value	1,000	34,000	71,802,000		71,837,000
Common stock issued upon exercise of options, Shares		976,799
Common stock issued upon exercise of options, Value		1,000	943,000		944,000
Common stock issued under restricted stock awards, Shares		100,000
Common stock issued under Employee Stock Purchase Plan, Shares		498,050
Common stock issued under Employee Stock Purchase Plan, Value		1,000	544,000		545,000
Share-based compensation			6,207,000		6,207,000
Series E preferred stock dividends			(232,000)		(232,000)
Net loss				(35,362,000)	(35,362,000)
Ending Balance, Value at Apr. 30, 2014	$ 1,000	$ 179,000	$ 470,785,000	$ (403,266,000)	$ 67,699,000
Ending Balance, Shares at Apr. 30, 2014	775,000	178,871,164

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (35,362,000)	$ (29,780,000)	$ (42,119,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	6,207,000	3,435,000	2,769,000
Depreciation and amortization	986,000	1,087,000	908,000
Loss on early extinguishment of debt	0	1,696,000	0
Amortization of discount on notes payable and debt issuance costs	0	0	33,000
Loss on disposal of property and equipment	4,000	8,000	2,000
Changes in operating assets and liabilities:
Trade and other receivables, net	330,000	691,000	(964,000)
Government contract receivables	0	0	93,000
Inventories	(1,191,000)	(728,000)	1,673,000
Prepaid expenses and other current assets, net	(710,000)	86,000	158,000
Other non-current assets	(94,000)	2,000	789,000
Accounts payable	(391,000)	(691,000)	(601,000)
Accrued clinical trial site and related fees	3,503,000	(1,181,000)	(181,000)
Accrued payroll and related expenses	255,000	1,114,000	1,013,000
Deferred revenue	1,070,000	451,000	(2,237,000)
Customer deposits	(2,299,000)	3,194,000	3,106,000
Other accrued expenses and current liabilities	(464,000)	24,000	(62,000)
Other long-term liabilities	(98,000)	(334,000)	(258,000)
Net cash used in operating activities	(28,254,000)	(20,926,000)	(35,878,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Property and equipment acquisitions	(755,000)	(853,000)	(1,554,000)
(Increase) decrease in other assets	(1,767,000)	102,000	383,000
Net cash used in investing activities	(2,522,000)	(751,000)	(1,171,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock, net of issuance costs of $1,504,000, $1,232,000, and $1,151,000, respectively	53,920,000	39,522,000	33,179,000
Proceeds from issuance of Series E preferred stock, net of issuance costs of $1,458,000	17,917,000	0	0
Proceeds from issuance of notes payable, net of issuance costs of $251,000	0	14,749,000	0
Proceeds from issuance of common stock under Employee Stock Purchase Plan	545,000	534,000	236,000
Proceeds from exercise of stock options	944,000	96,000	0
Dividends paid on preferred stock	(232,000)	0	0
Principal payments on notes payable	0	(15,000,000)	(1,333,000)
Payment of final fee on notes payable	0	(975,000)	0
Principal payments on capital leases	(32,000)	(78,000)	(75,000)
Net cash provided by financing activities	73,062,000	38,848,000	32,007,000
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	42,286,000	17,171,000	(5,042,000)
CASH AND CASH EQUIVALENTS, beginning of period	35,204,000	18,033,000	23,075,000
CASH AND CASH EQUIVALENTS, end of period	77,490,000	35,204,000	18,033,000
SUPPLEMENTAL INFORMATION:
Cash paid for interest	1,000	46,000	68,000
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Fair market value of warrants issued in connection with notes payable	0	470,000	0
Accounts payable and other liabilities for purchase of property and equipment	$ 4,000	$ 20,000	$ 47,000

1. ORGANIZATION AND BUSINESS DESCRIPTION

12 Months Ended

Apr. 30, 2014

Organization And Business Description

1. ORGANIZATION AND BUSINESS DESCRIPTION

Organization - In this Annual Report, “Peregrine,” “Company,” “we,” “us,” and “our,” refer to Peregrine Pharmaceuticals, Inc., and our wholly owned subsidiary, Avid Bioservices, Inc. (“Avid”). Peregrine was incorporated under the laws of the state of California in June 1981, reincorporated in Delaware in September 1996 and commenced operations of Avid in January 2002.

Business Description - We are a biopharmaceutical company with a portfolio of novel drug candidates in clinical trials focused on the treatment and diagnosis of cancer. Our lead immunotherapy candidate, bavituximab, is in Phase III development for the treatment of second-line non-small cell lung cancer (the “SUNRISE trial”) along with several investigator-sponsored trials evaluating other treatment combinations and additional oncology indications. We are also evaluating our lead molecular imaging agent, 124I-PGN650, in an exploratory clinical trial for the imaging of multiple solid tumor types.

With respect to our lead immunotherapy candidate, bavituximab, in December 2013 we initiated our Phase III SUNRISE trial (Stimulating ImmUne RespoNse thRough BavItuximab in a PhaSE III Lung Cancer Study) for the treatment of second-line non-small cell lung cancer (“NSCLC”) and patient enrollment is ongoing. In January 2014, we announced that bavituximab received Fast Track designation from the U.S. Food and Drug Administration (“FDA”) for combination with docetaxel in patients with previously-treated non-squamous NSCLC.

With respect to our imaging program, we are currently conducting an open-label, single-center clinical trial under an exploratory Investigational New Drug Application filed with the FDA for our lead imaging agent 124I-PGN650 for the imaging of multiple solid tumor types.

In addition to our clinical research and development efforts, we operate a wholly-owned cGMP (current Good Manufacturing Practices) contract manufacturing subsidiary, Avid. Avid is a Contract Manufacturing Organization (“CMO”) that provides fully integrated services from cell line development to commercial cGMP biomanufacturing for Peregrine and its third-party clients. In addition to generating revenue from providing a broad range of biomanufacturing services to third-party clients, Avid is strategically integrated with Peregrine to manufacture all clinical products to support our company-sponsored and investigator-sponsored trials while also preparing for potential commercial launch of bavituximab.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Apr. 30, 2014

Accounting Policies [Abstract]

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation - The accompanying consolidated financial statements include the accounts of Peregrine and its wholly-owned subsidiary, Avid. All intercompany balances and transactions have been eliminated.

Use of Estimates - The preparation of our financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates.

Reclassification - Certain comparative amounts in our notes to consolidated financial statements for fiscal years 2013 and 2012 have been reclassified to conform to the current fiscal year presentation. These reclassifications had no effect on previously reported net loss or cash flows.

Liquidity and Financial Condition - At April 30, 2014, we had $77,490,000 in cash and cash equivalents. We have expended substantial funds on the research and development of our product candidates, and funding the operations of Avid. As a result, we have historically experienced negative cash flows from operations since our inception and we expect negative cash flows from operations to continue in the foreseeable future. Our net losses incurred during the past three fiscal years ended April 30, 2014, 2013 and 2012, amounted to $35,362,000, $29,780,000, and $42,119,000, respectively. Therefore, unless and until we are able to generate sufficient revenues from Avid’s contract manufacturing services and/or from the sale and/or licensing of our products under development, we expect such losses to continue in the foreseeable future.

Therefore, our ability to continue to fund our operations, including our SUNRISE trial, is highly dependent on the amount of cash and cash equivalents on hand combined with our ability to raise additional capital to support our future operations through one or more methods, including but not limited to, raising additional capital in the equity markets, securing debt financing, licensing or partnering our product candidates in development, or generating additional revenue from Avid.

Historically, we have funded a significant portion of our operations through the issuance of equity. During fiscal year 2014, we raised $55,424,000 in aggregate gross proceeds from the sale of shares of our common stock under an At Market Sales Issuance Agreement (Note 6) and raised an additional $19,375,000 in aggregate gross proceeds in connection with a firm commitment underwritten public offering of our newly designated 10.50% Series E Convertible Preferred Stock (the “Series E Preferred Stock”) (Note 6). Subsequent to April 30, 2014 and through July 14, 2014, we raised an additional $10,000,000 in aggregate gross proceeds from the sale of Series E Preferred Stock under a separate At Market Issuance Sales Agreement (Note 13). With these proceeds, we currently estimate that we have sufficient cash resources to meet our anticipated cash needs to fund our operations through at least the next twelve months based on our current projections, which include projected costs associated with our Phase III SUNRISE trial, projected cash outflows for the payment of dividends on our Series E Preferred Stock, projected cash inflows under signed contracts with existing customers of Avid and assuming we raise no additional capital from the capital markets or other potential sources.

Our ability to raise additional capital in the equity markets to fund our operations, including our SUNRISE trial, in future years is dependent on a number of factors, including, but not limited to, the market demand for our common stock and/or Series E Preferred Stock. The market demand or liquidity of our common stock and/or Series E Preferred Stock is subject to a number of risks and uncertainties, including but not limited to, negative economic conditions, adverse market conditions, adverse clinical trial results and significant delays in our SUNRISE trial. If our ability to access the capital markets becomes severely restricted, it could have a negative impact on our business plans, including our clinical trial programs and other research and development activities. 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.

While we will continue to explore various ways to fund our operations, we may not be successful in (i) raising additional capital in the equity markets, (ii) securing debt financing, (iii) licensing or partnering our products in development, or (iv) generating additional revenue from Avid, to complete the research, development, and clinical testing of our product candidates, including the SUNRISE trial.

Cash and Cash Equivalents - We consider all highly liquid, short-term investments with an initial maturity of three months or less to be cash equivalents.

Trade and Other Receivables - Trade receivables are recorded at the invoiced amount net of an allowance for doubtful accounts, if necessary. Other receivables are reported at amounts expected to be collected net of an allowance for doubtful accounts, if necessary. Trade and other receivables, net, at April 30, consist of the following:

	2014		2013
Trade receivables⁽¹⁾	$	1,219,000	$	1,642,000
Other receivables, net		113,000		20,000
Trade and other receivables, net	$	1,332,000	$	1,662,000

______________

⁽¹⁾Represents amounts billed for contract manufacturing services provided by Avid.

Allowance for Doubtful Accounts - 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, 2014 and 2013, we determined an allowance for doubtful accounts of $13,000 and $16,000, respectively, was necessary with respect to trade and other receivables.

In addition, amounts billed under our former government contract with Transformational Medical Technologies of the U.S. Department of Defense’s Defense Threat Reduction Agency, which expired on April 15, 2011, included the reimbursement for provisional rates covering allowable indirect overhead and general and administrative costs (“Indirect Rates”). These Indirect Rates were initially estimated based on financial projections and were subject to change based on actual costs incurred during each fiscal year. In addition, these Indirect Rates are currently subject to audit by the Defense Contract Audit Agency for cost reimbursable type contracts. Upon the expiration of this contract, we recorded an unbilled receivable of $92,000 pertaining to the difference calculated between the estimated and actual Indirect Rates, which amount at April 30, 2014 and 2013 is included in prepaid expenses and other current assets. However, due to the uncertainty of its collectability we determined it appropriate to record a corresponding allowance for doubtful accounts with respect to unbilled Indirect Rates in the amount of $92,000 at April 30, 2014 and 2013.

Inventories - Inventories are stated at the lower of cost or market and primarily include raw materials, direct labor and overhead costs (work-in-process) associated with our wholly owned subsidiary, Avid. Cost is determined by the first-in, first-out method. Inventories consist of the following at April 30,:

	2014		2013
Raw materials	$	2,370,000	$	2,169,000
Work-in-process		3,160,000		2,170,000
Total inventories	$	5,530,000	$	4,339,000

Property and Equipment, net - 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.

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 and trade receivables. We maintain our 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 balances to the extent of the cash amount recorded on the accompanying consolidated balance sheet.

Our trade receivables from amounts billed for contract manufacturing services provided by Avid 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 ongoing customers and generally do not require collateral, but we can terminate any contract if a material default occurs. As of April 30, 2014 and 2013, approximately 99% and 97% of our trade receivables, respectively, represent amounts due from two customers.

In addition, contract manufacturing revenue generated by Avid has historically been derived from a small customer base (Note 11). These customers typically do not enter into long-term contracts because their need for drug supply depends on a variety of factors, including the drug’s stage of development, their financial resources, and, with respect to commercial drugs, demand for the drug in the market. Our future results of operations could be adversely affected if revenue from any one of our primary customers is significantly reduced or eliminated.

Comprehensive Loss - Comprehensive loss is defined as 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.

Impairment - Long-lived assets are reviewed for impairment in accordance with authoritative guidance for impairment or disposal of long-lived assets. Long-lived assets are reviewed for events or changes in circumstances, which indicate that their carrying value may not be recoverable. Long-lived assets are reported at the lower of carrying amount or fair value less cost to sell. For the fiscal years ended April 30, 2014 and 2013, there was no impairment of the value of our long-lived assets.

Fair Value of Financial Instruments - The carrying amounts in the accompanying consolidated balance sheet for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to their short-term maturities.

Fair Value Measurements - We determine fair value measurements in accordance with the authoritative guidance for fair value measurements and disclosures for all assets and liabilities within the scope of this guidance. This guidance, which among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. 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 – 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.

As of April 30, 2014 and 2013, we do not have any Level 2 or Level 3 financial assets or liabilities and our cash and 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).

Customer Deposits - Customer deposits primarily represents advance billings and/or payments received from Avid’s third-party customers prior to the initiation of contract manufacturing services.

Revenue Recognition - We currently derive revenue from the following two sources: (i) contract manufacturing services provided by Avid, and (ii) licensing revenue related to agreements associated with Peregrine’s technologies under development.

We recognize revenue in accordance with the authoritative guidance for revenue recognition. We recognize revenue when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery (or passage of title) has occurred or services have been rendered, (iii) the seller's price to the buyer is fixed or determinable, and (iv) collectability is reasonably assured. We also comply with the authoritative guidance for revenue recognition regarding arrangements with multiple deliverables.

Contract Manufacturing Revenue

Revenue associated with contract manufacturing services provided by Avid is recognized once the service has been rendered and/or upon shipment (or passage of title) of the product to the customer. On occasion, we recognize revenue on a “bill-and-hold” basis in accordance with the authoritative guidance. Under “bill-and-hold” arrangements, revenue is recognized once the product is complete and ready for shipment, title and risk of loss has passed to the customer, management receives a written request from the customer for “bill-and-hold” treatment, the product is segregated from other inventory, and no further performance obligations exist.

In addition, we also follow the authoritative guidance when reporting revenue as gross when we act as a principal versus reporting revenue as net when we act as an agent. For transactions in which we act as a principal, have discretion to choose suppliers, bear credit risk and perform a substantive part of the services, revenue is recorded at the gross amount billed to a customer and costs associated with these reimbursements are reflected as a component of cost of sales for contract manufacturing services.

Any amounts received prior to satisfying our revenue recognition criteria are recorded as deferred revenue in the accompanying consolidated financial statements. We also record a provision for estimated contract losses, if any, in the period in which they are determined.

License Revenue

Revenue associated with licensing agreements primarily consists of non-refundable upfront license fees, non-refundable annual license fees and milestone payments. Non-refundable upfront license fees received under license agreements, whereby continued performance or future obligations are considered inconsequential to the relevant license technology, are recognized as revenue upon delivery of the technology. If a licensing agreement has multiple elements, we analyze each element of our licensing agreements and consider a variety of factors in determining the appropriate method of revenue recognition of each element.

Multiple Element Arrangements. Prior to the adoption of Accounting Standards Update (“ASU”) No. 2009-13 on May 1, 2011, if a license agreement has multiple element arrangements, we analyze and determine whether the deliverables, which often include performance obligations, can be separated or whether they must be accounted for as a single unit of accounting in accordance with the authoritative guidance. Under multiple element arrangements, we recognize revenue for delivered elements only when the delivered element has stand-alone value and we have objective and reliable evidence of fair value for each undelivered element. If the fair value of any undelivered element included in a multiple element arrangement cannot be objectively determined, the arrangement would then be accounted for as a single unit of accounting, and revenue is recognized over the estimated period of when the performance obligation(s) are performed.

In addition, under certain circumstances, when there is objective and reliable evidence of the fair value of the undelivered items in an arrangement, but no such evidence for the delivered items, we utilize the residual method to allocate the consideration received under the arrangement. Under the residual method, the amount of consideration allocated to delivered items equals the total arrangement consideration less the aggregate fair value of the undelivered items, and revenue is recognized upon delivery of the undelivered items based on the relative fair value of the undelivered items.

For licensing agreements or material modifications of existing licensing agreements entered into after May 1, 2011, we follow the provisions of ASU No. 2009-13. If a licensing agreement includes multiple elements, we identify which deliverables represent separate units of accounting, and then determine how the arrangement consideration should be allocated among the separate units of accounting, which may require the use of significant judgment.

If a licensing agreement includes multiple elements, a delivered item is considered a separate unit of accounting if both of the following criteria are met:

	1.	The delivered item has value to the licensing partner on a standalone basis based on the consideration of the relevant facts and circumstances for each agreement;
	2.	If the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially in the Company’s control.

Arrangement consideration is allocated at the inception of the agreement to all identified units of accounting based on their relative selling price. The relative selling price for each deliverable is determined using vendor specific objective evidence (“VSOE”) of selling price or third-party evidence of selling price if VSOE does not exist. If neither VSOE nor third-party evidence of selling price exists, we use our best estimate of the selling price for the deliverable. The amount of allocable arrangement consideration is limited to amounts that are fixed or determinable. The consideration received is allocated among the separate units of accounting, and the applicable revenue recognition criteria are applied to each of the separate units. Changes in the allocation of the sales price between delivered and undelivered elements can impact revenue recognition but do not change the total revenue recognized under any agreement.

Milestone Payments. Effective May 1, 2011, we adopted on a prospective basis the Milestone Method under ASU No. 2010-17 for new licensing agreements or material modifications of existing licensing agreements entered into after May 1, 2011. Under the Milestone Method, we recognize consideration that is contingent upon the achievement of a milestone in its entirety as revenue in the period in which the milestone is achieved only if the milestone is substantive in its entirety. A milestone is considered substantive when it meets all of the following criteria:

	1.	The consideration is commensurate with either the entity’s performance to achieve the milestone or the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the entity’s performance to achieve the milestone;
	2.	The consideration relates solely to past performance; and
	3.	The consideration is reasonable relative to all of the deliverables and payment terms within the arrangement.

A milestone is defined as an event (i) that can only be achieved based in whole or in part on either the entity’s performance or on the occurrence of a specific outcome resulting from the entity’s performance, (ii) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved and (iii) that would result in additional payments being due to the Company.

The provisions of ASU No. 2010-17 do not apply to contingent consideration for which payment is either contingent solely upon the passage of time or the result of a counterparty’s performance. We will assess the nature of, and appropriate accounting for, these payments on a case-by-case basis in accordance with the applicable authoritative guidance for revenue recognition.

Any milestone payments received prior to satisfying these revenue recognition criteria were recorded as deferred revenue in the accompanying consolidated financial statements.

Research and Development Expenses - Research and development expenses primarily include (i) payroll and related costs, including share-based compensation, associated with research and development personnel, (ii) costs related to clinical trials and preclinical testing of our technologies under development, (iii) costs to develop and manufacture the product candidates, including raw materials and supplies, product testing, depreciation, and facility related expenses, (iv) expenses for research services provided by universities and contract laboratories, including sponsored research funding, and (v) other research and development expenses. Research and development expenses are charged to expense as incurred when these expenditures relate to our research and development efforts and have no alternative future uses.

Clinical trial costs are a significant component of our research and development expenses. We have a history of contracting with third parties that perform various clinical trial activities on our behalf in the ongoing development of our product candidates. The financial terms of these contracts are subject to negotiations and may vary from contract to contract and may result in uneven payment flow. Expenses related to clinical trials are accrued based on our estimates and/or representations from third parties (including clinical research organizations) regarding services performed. If the contracted amounts are modified (for instance, as a result of changes in the clinical trial protocol or scope of work to be performed), we modify our accruals accordingly on a prospective basis. Revisions in the scope of a contract are charged to expense in the period in which the facts that give rise to the revision become reasonably certain. There were no material adjustments for a change in estimate to research and development expenses in the accompanying consolidated financial statements in any of the three years ended April 30, 2014.

Under certain research and development agreements, we are obligated to make certain advance payments, including nonrefundable amounts, for goods or services that will be used or rendered for future research and development activities and are deferred and capitalized as prepaid research and development expenses. These advance payments are recognized as an expense in the period the related goods are delivered or the related services are performed. We assess our prepaid research and development expenses for impairment when events or changes in circumstances indicate that the carrying amount of the prepaid expense may not be recoverable or provide future economic benefit.

In addition, under certain in-licensing agreements associated with the research and development of our product candidates, we are obligated to pay certain milestone payments based on potential clinical development and regulatory milestones (Note 5). These milestone payments have no alternative future uses (in other research and development projects or otherwise) and therefore have no separate economic values and are expensed as research and development costs at the time the costs are incurred. We have no in-licensed product candidates that have alternative future uses in research and development projects or otherwise.

Share-based Compensation - We account for stock options and other share-based awards granted under our equity compensation plans in accordance with the authoritative guidance for share-based compensation. The estimated fair value of share-based payments to employees in exchange for services is measured at the grant date, using a fair value based method, and is recognized as expense on a straight-line basis over the requisite service periods. Share-based compensation expense recognized during the period is based on the value of the portion of the share-based payment that is ultimately expected to vest during the period. Share-based compensation expense for a share-based payment with a performance condition is recognized on a straight-line basis over the requisite service period when the achievement of the performance condition is determined to be probable. If a performance condition is not determined to be probable or is not met, no share-based compensation is recognized and any previously recognized compensation expense is reversed.

In addition, we periodically grant stock options and other share-based awards to non-employee consultants, which we account for in accordance with the authoritative guidance for share-based compensation. The cost of non-employee services received in exchange for share-based awards are measured based on either the fair value of the consideration received or the fair value of the share-based award issued, whichever is more reliably measurable. In addition, guidance requires share-based compensation related to unvested options and awards issued to non-employees to be recalculated at the end of each reporting period based upon the fair market value on that date until the share-based award has vested, and any cumulative catch-up adjustment to share-based compensation resulting from the re-measurement is recognized in the current period. See Note 7 for further discussion regarding share-based compensation.

Income Taxes - We utilize the liability method of accounting for income taxes in accordance with authoritative guidance for accounting for income taxes. Under the liability method, deferred taxes are determined based on the differences between the consolidated financial statements and tax basis of assets and liabilities using enacted tax rates. A valuation allowance is provided when it is more likely than not that some portion or the entire deferred tax asset will not be realized. See Note 9 for further discussion regarding income taxes.

Basic and Dilutive 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 common shares outstanding during the period excluding the dilutive effects of stock options, common shares expected to be issued under our employee stock purchase plan, warrants, and convertible 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 common shares outstanding during the period plus the potential dilutive effects of stock options, common shares expected to be issued under our employee stock purchase plan, warrants, and convertible 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, common shares expected to be issued under our employee stock purchase plan, and warrants outstanding during the period was calculated in accordance with the treasury stock method, but are excluded if their effect is anti-dilutive. The potential dilutive effect of convertible 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. Because the impact of stock options, common shares expected to be issued under our employee stock purchase plan, warrants, and convertible 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, 2014.

The calculation of weighted average diluted shares outstanding excludes the dilutive effect of the following weighted average outstanding stock options, common shares expected to be issued under our employee stock purchase plan, and warrants since their impact are anti-dilutive during periods of net loss, resulting in an anti-dilutive effect as of April 30,:

	2014		2013		2012
Stock options		4,576,112		3,505,777		96,591
Employee stock purchase plan		72,896		307,501		110,469
Warrants		3,802		–		–
Total		4,652,810		3,813,278		207,060

The calculation of weighted average diluted shares outstanding also excludes weighted average outstanding stock options and warrants to purchase 5,424,803, 5,860,305, and 5,970,393 shares of common stock for fiscal years ended April 30, 2014, 2013, and 2012, respectively, as their exercise prices were greater than the average market price of our common stock during the respective periods, resulting in an anti-dilutive effect. In addition, weighted average shares of 1,253,452, assuming issuance of shares upon conversion of Series E Preferred Stock for fiscal year 2014, were also excluded from the calculation of weighted average diluted shares outstanding as the conversion price was greater than the average market price during the period, resulting in an anti-dilutive effect.

Subsequent to April 30, 2014 and through July 14, 2014, we granted an aggregate of 3,995,804 stock options under a broad based annual grant for fiscal year 2015 (Note 13) and issued an aggregate of 400,000 shares of our Series E Preferred Stock (Note 13), which are not included in the calculation of basic and dilutive net loss per common share for the year ended April 30, 2014.

Adoption of Recent Accounting Pronouncements

Effective May 1, 2013, we adopted Financial Accounting Standards Board’s (“FASB”) ASU No. 2013-02, Other Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU No. 2013-02 does not change the current requirements for reporting net income or other comprehensive income in financial statements, however, it does require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amounts are required to be reclassified in their entirety to net income. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference to other disclosures that provide additional detail about those amounts. The adoption of ASU No. 2013-02 did not have a material impact on our consolidated financial statements as the requirements are disclosure only in nature and there were no reclassifications in any period presented.

Pending Adoption of Recent Accounting Pronouncements

In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU No. 2013-11 requires entities to present in the financial statements an unrecognized tax benefit, or a portion of an unrecognized tax benefit as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward except to the extent such items are not available or not intended to be used at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position. In such instances, the unrecognized tax benefit is required to be presented in the financial statements as a liability and not be combined with deferred tax assets. This guidance is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013, which will be our fiscal year 2015 (or May 1, 2014). We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606): Revenue from Contracts with Customers, which guidance in this update will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance when it becomes effective. ASU No. 2014-09 affects any entity that enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of ASU No. 2014-09 is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, which will be our fiscal year 2018 (or May 1, 2017), and entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. Early adoption is prohibited. We are currently in the process of evaluating the impact of adoption of ASU No. 2014-09 on our consolidated financial statements and related disclosures.

- Definition

The entire disclosure for all significant accounting policies of the reporting entity.

+ References+ Details

3. NOTE PAYABLE AND CAPITAL LEASE OBLIGATIONS

12 Months Ended

Apr. 30, 2014

Debt and Capital Lease Obligations [Abstract]

3. NOTE PAYABLE AND CAPITAL LEASE OBLIGATIONS

August 2012 Note Payable Obligation

On August 30, 2012, we entered into a loan and security agreement (the “Loan Agreement”) with Oxford Finance LLC, MidCap Financial SBIC LP, and Silicon Valley Bank (collectively, the “Lenders”) for up to $30,000,000 in total funding available in two $15,000,000 tranches. The Loan Agreement was secured by a first-priority security interest in substantially all of our assets, excluding our intellectual property and our rights under license agreements granting us rights to intellectual property. On August 30, 2012, we received initial funding of $15,000,000 under the Loan Agreement, excluding debt issuance costs of $251,000.

On September 24, 2012, we received a written notice of default (“Notice of Default”) from the Lenders, with respect to the Loan Agreement. The Notice of Default was triggered by a material adverse change under the Loan Agreement, whereby, pursuant to the terms of the Notice of Default, all amounts due under the Loan Agreement were declared immediately due and payable by the Lenders. On September 25, 2012, we paid the Lenders all obligations declared due and payable under the Loan Agreement, including outstanding principal of $15,000,000, accrued interest thereon at the Loan Agreement’s applicable fixed rate of 7.95% per annum, plus a final payment fee equal to 6.5% of the principal amount funded (or $975,000), upon which, the Loan Agreement was terminated.

In addition, under the Loan Agreement, we issued the Lenders warrants to purchase an aggregate of 273,280 shares of our common stock at a per share price of $2.47. The warrants are exercisable on a cash or cashless basis and expire on August 30, 2018, if unexercised. The fair value of the warrants issued was $470,000 and was calculated using a Black-Scholes valuation model with the following assumptions: risk-free interest rate of 0.87%; expected volatility of 80.20%; expected term of six years; and a dividend yield of 0%. The fair value of the warrants issued was initially recorded as a debt discount with a corresponding increase to additional paid-in capital. As of April 30, 2014, the warrants issued under the Loan Agreement were outstanding and exercisable (Note 8).

Upon the termination of the Loan Agreement, we recorded a loss on the early extinguishment of debt of $1,696,000, which consisted of the final payment fee of $975,000, the unamortized debt discount associated with the fair value of the warrants issued to the Lenders of $470,000, and the unamortized aggregate debt issuance costs of $251,000. The loss on the early extinguishment of debt is included in the accompanying consolidated statements of operations and comprehensive loss for the fiscal year ended April 30, 2013.

December 2008 Note Payable Obligation

On December 9, 2008, we borrowed $5,000,000 from MidCap Financial LLC and BlueCrest Capital Finance, L.P (collectively, the “Lenders”) under a term loan (the “Term Loan”) payable over three years. On December 1, 2011, the loan balance was paid in full.

In connection with the Term Loan, we issued warrants to purchase an aggregate of 338,410 shares of our common stock at an exercise price of $1.4775 per share. The fair value of the warrants issued was $414,000 and was calculated using a Black-Scholes valuation model with the following assumptions: risk-free interest rate of 2.00%; expected volatility of 70.72%; an expected term of five years; and a dividend yield of 0%. The fair value of the warrants issued was initially recorded as a debt discount with a corresponding increase to additional paid-in capital. The debt discount was amortized as a non-cash interest expense over the term of the outstanding loan using the effective interest method. The discount was fully amortized as of December 1, 2011. During fiscal year 2012, we amortized $12,000 in non-cash interest expense, which amount is included in interest and other expense in the accompanying consolidated financial statements. As of April 30, 2014, there were no warrants outstanding under the Term Loan (Note 8).

In connection with the Term Loan, we also incurred $469,000 in financing fees and legal costs related to the closing the term loan. These fees were classified as debt issuance costs and were amortized as a non-cash interest expense over the term of the outstanding loan using the effective interest method. The debt issuance costs were fully amortized as of December 1, 2011. During fiscal year 2012, we amortized $21,000 in non-cash interest expense, which amounts are included in interest and other expense in the accompanying consolidated financial statements.

Capital Lease Obligations

We have financed certain equipment under capital lease agreements, which bear interest at a rate ranging from 3.71% to 5.36% per annum.

The equipment purchased under these capital leases is included in property in the accompanying consolidated financial statements at April 30, 2014 and 2013, as follows:

	2014			2013
Furniture, fixtures, office equipment and software	$	258,000		$	258,000
Less accumulated depreciation and amortization		(200,000	)		(148,000	)
Net book value	$	58,000		$	110,000

Minimum future capital lease payments as of April 30, 2014 are as follows:

Year ending April 30, 2015:	$	13,000

Total minimum lease payments		13,000
Amount representing interest		–
Net present value minimum lease payments		13,000
Less current portion included in other current liabilities		(13,000	)
Long-term portion included in other long-term liabilities	$	–

4. COMMITMENTS AND CONTINGENCIES

12 Months Ended

Apr. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

4. COMMITMENTS AND CONTINGENCIES

Operating Leases - Our corporate offices, research and development, and manufacturing facilities are located in Tustin, California. We lease an aggregate of approximately 61,000 square feet of office, research and manufacturing space in three adjacent buildings under two separate lease agreements.

In December 1998, we entered into a lease agreement (the “Original Lease”) to lease two buildings located at our facilities in Tustin, California. The Original Lease has an original lease term of 12 years with two 5-year renewal options and includes scheduled rental increases of 3.35% every two years. In December 2005, we entered into a First Amendment to Lease and Agreement of Lease (“First Amendment”) with the landlord to our Original Lease and extended the original lease term for seven additional years to expire on December 31, 2017, while maintaining our two 5-year renewal options that could extend our lease to December 31, 2027. Our monthly lease payments will continue to increase at a rate of 3.35% every two years under the First Amendment.

In May 2010, we entered into a separate lease agreement to lease additional office and research space in a third building adjacent to our two existing leased buildings located in Tustin, California. Our monthly base rent under the lease agreement is approximately $11,000 and includes nominal scheduled increases every twelve months. The lease expires on December 31, 2017 and includes a 5-year option to extend the lease to December 31, 2022. In addition, under the terms of the lease agreement, we received a tenant improvement reimbursement of $125,000 during fiscal year 2011, which we classified as deferred rent and is being amortized on a straight-line basis over the term of the lease as a reduction to rent expense. Tenant improvements associated with the lease agreement are recorded as an addition to leasehold improvements and are being amortized over the shorter of the estimated useful life of the improvement or the remaining life of the lease.

Under each of the aforementioned facility operating leases, we record rent expense on a straight-line basis and the short-term and long-term differences between the amounts paid and the amounts expensed are included in other current liabilities and other long-term liabilities, respectively, in the accompanying consolidated financial statements. Annual rent expense under the aforementioned facility operating lease agreements totaled $938,000, $938,000, and $938,000 for the fiscal years ended April 30, 2014, 2013, and 2012, respectively.

At April 30, 2014, future minimum lease payments under all non-cancelable operating leases are as follows:

Year ending April 30,:		Minimum Lease Payments
	2015	$	1,079,000
	2016		1,079,000
	2017		1,068,000
	2018		730,000
	2019		–
		$	3,956,000

Legal Proceedings - 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 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. Litigation is inherently unpredictable. Although the ultimate resolution of these various matters cannot be determined at this time, we do not believe that such matters, individually or in the aggregate, will have a material adverse effect on our consolidated results of operations, cash flows, or financial condition.

Securities Related Class Action Lawsuit

On September 28, 2012, three complaints were filed in the U.S. District Court for the Central District of California against us and certain of our executive officers and one consultant (collectively, the “Defendants”) on behalf of certain purchasers of our common stock. The complaints have been brought as purported stockholder class actions, and, in general, include allegations that Defendants violated (i) Section 10(b) of the Exchange Act, and Rule 10b-5 promulgated thereunder and (ii) Section 20(a) of the Exchange Act, by making materially false and misleading statements regarding the interim results of our bavituximab Phase II second-line NSCLC trial, thereby artificially inflating the price of our common stock. The plaintiffs are seeking unspecified monetary damages and other relief. On February 5, 2013, the court consolidated the related actions with the low-numbered case (captioned Anderson v. Peregrine Pharmaceuticals, Inc., et al., Case No. 12-cv-1647-PSG (FMOx)). After the court issued two separate orders granting Defendants’ two separate motions to dismiss, on May 1, 2014, the court issued a third order granting Defendants’ motion to dismiss the plaintiff’s amended complaint with prejudice. On May 29, 2014, the plaintiff filed a notice of appeal with respect to the court’s order granting the Defendants’ motion to dismiss. Lead plaintiff’s opening brief with respect to the appeal is due on November 10, 2014 and the Defendants’ answering brief is due on December 10, 2014. We believe that the class action lawsuit is without merit and intend to vigorously defend the action, including seeking dismissal of any amended complaint.

Derivative Litigation

On May 9, 2013, an alleged shareholder filed, purportedly on behalf of the Company, a derivative lawsuit, captioned Roy v. Steven W. King, et al., Case No. 13-cv-0741-PSG (RNBx), in the U.S. District Court for the Central District of California against certain of our executive officers and directors. The complaint asserts claims for breach of fiduciary duty, abuse of control, gross mismanagement, waste of corporate assets and unjust enrichment arising from substantially similar factual allegations as those asserted in the consolidated securities class action lawsuit, described above (the “Securities Class Action”). This case was subsequently transferred to the same court and judge handling the Securities Class Action lawsuit. On May 31, 2013, the judge issued an order administratively closing the case and inviting the parties to move to re-open after the final resolution of defendants’ motions to dismiss in the Securities Class Action.

On October 10, 2013, a derivative and class action complaint, captioned Michaeli v. Steven W. King, et al., C.A. No. 8994-VCL, was filed in the Court of Chancery of the State of Delaware against certain of our executive officers and directors. The complaint alleges that the Company’s directors and executives breached their respective fiduciary duties in connection with certain purportedly improper compensation decisions made by the Company’s Board of Directors during the past three fiscal years, including: (i) the grant of a stock option to Mr. King on May 4, 2012; (ii) the non-routine broad-based stock option grant to the Company’s directors, executives, all other employees and certain consultants on December 27, 2012; and (iii) the payment, during the past three fiscal years, of compensation to the Company’s non-employee directors. In addition, the complaint alleges that the Company’s directors breached their fiduciary duty of candor by filing and seeking stockholder action on the basis of an allegedly materially false and misleading proxy statement for the Company’s 2013 annual meeting of stockholders. The defendants filed their answer to the complaint on February 5, 2014.

Other Legal Matters

On September 24, 2012, we filed a lawsuit, captioned Peregrine Pharmaceuticals, Inc. v. Clinical Supplies Management, Inc., Case No. 8:12-cv-01608 JST(AN) (C.D. Cal), against Clinical Supplies Management, Inc. (“CSM”), in the U.S. District Court for the Central District of California. In 2010, we had contracted with CSM as our third-party vendor responsible for distribution of the blinded investigational product used in our bavituximab Phase IIb second-line NSCLC trial. As part of the routine collection of data in advance of an end-of-Phase II meeting with regulatory authorities, we discovered major discrepancies between some patient sample test results and patient treatment code assignments. Consequently, we filed this lawsuit against CSM alleging breach of contract, negligence and negligence per se arising from CSM’s performance of its contracted services. We are seeking monetary damages. On March 7, 2013, we and CSM submitted to the court a proposed stipulation pursuant to which the lawsuit would be stayed for up to 120 days during which time we and CSM would participate in an alternative dispute resolution process, pursuant to our contract with CSM. The proposed stipulation was approved by the court on March 8, 2013. On June 26, 2013, we and CSM engaged in an alternative dispute resolution session that did not result in any resolution of our dispute. The aforementioned stay expired on July 6, 2013. We granted CSM until July 19, 2013 to file an answer to our complaint, which CSM did on July 11, 2013. The parties appeared in court in February 2014 for a scheduling conference at which the court scheduled the trial to commence in April 2015. On June 5, 2014, CSM filed with the court a Notice of Motion and Motion for Partial Summary Judgment seeking partial summary judgment on our claims for damages on the grounds that the limitation of liability clauses contained in our master services agreement with CSM are valid and enforceable. Our opposition to CSM’s motion was filed with the court on June 23, 2104, and the hearing on the motion is scheduled for July 21, 2014.

- Definition

The entire disclosure for commitments and contingencies.

+ References+ Details

5. LICENSING AGREEMENTS

12 Months Ended

Apr. 30, 2014

Licensing Agreements

5. LICENSING AGREEMENTS

The following represents a summary of our key in-licensing agreements covering our products in clinical development. In addition, we do not perform any research and development activities for any unrelated entities.

Bavituximab

In August 2001 and August 2005, we exclusively in-licensed the worldwide rights to the phosphatidylserine (“PS”)-targeting technology platform from the University of Texas Southwestern Medical Center at Dallas (“UTSWMC”), including bavituximab. During November 2003, we entered into a non-exclusive license agreement with Genentech, Inc. (“Genentech”), to license certain intellectual property rights covering methods and processes for producing antibodies used in connection with the development of our PS-targeting program. During December 2003, we entered into an exclusive commercial license agreement with Avanir Pharmaceuticals, Inc., (“Avanir”) covering the generation of a chimeric monoclonal antibody. In March 2005, we entered into a worldwide non-exclusive license agreement with Lonza Biologics (“Lonza”) for intellectual property and materials relating to the expression of recombinant monoclonal antibodies for use in the manufacture of bavituximab.

Under our in-licensing agreements relating to bavituximab we are obligated to pay future milestone payments based on potential clinical development and regulatory milestones, plus a royalty on net sales and/or a percentage of sublicense income. The applicable royalty rate under each of the foregoing in-licensing agreements is in the low single digits. During fiscal year 2014, we expensed $125,000 associated with milestone obligations under in-licensing agreements covering bavituximab, which is included in research and development expense in the accompanying consolidated statements of operations and comprehensive loss. We did not incur any milestone related expenses during fiscal years 2013 and 2012.

The following table provides certain information with respect to each of our in-licensing agreements relating to our bavituximab program.

Licensor		Agreement Date	Total Milestone Obligations Expensed To Date		Potential Future Milestone Obligations ⁽¹⁾
	UTSWMC	August 2001	$	173,000	$	300,000
	UTSWMC	August 2005		85,000		375,000
	Lonza	March 2005		64,000		- ⁽²⁾
	Avanir	December 2003		100,000		1,000,000
	Genentech	November 2003		500,000		5,000,000
	Total		$	922,000	$	6,675,000

______________

⁽¹⁾

Under our current agreements, potential future milestone obligations are due upon achieving certain clinical and regulatory milestones. Based on the current stage of clinical development for bavituximab, future milestone obligations would be due upon submission of a biologics license application in the U.S. and upon FDA approval, which events are currently uncertain and depend on positive clinical trials results. In addition, potential future milestone obligations vary by license agreement (as defined in each license agreement) and certain agreements depend on a valid patent claim, as defined in each of these underlying agreements, at the time the potential milestone is achieved.

⁽²⁾

During fiscal year 2012, we completed patient enrollment in our first randomized phase II clinical trial using bavituximab, which triggered an increase in our annual license fee obligation to 75,000 pounds sterling per annum (or approximately $126,000 U.S. based on the exchange rate at April 30, 2014). In addition, in the event we utilize a third-party contract manufacturer other than Lonza to manufacture bavituximab for commercial purposes, we would owe Lonza 300,000 pounds sterling per year (or approximately $505,000 U.S. based on the exchange rate at April 30, 2014).

We do not expect to incur any milestone related expenses regarding our bavituximab program during fiscal year 2015. In addition, of the total potential future milestone obligations of $6,675,000, up to $6,400,000 would be due upon the first commercial approval of bavituximab pursuant to these in-licensing agreements. However, given the uncertainty of the drug development and the regulatory approval process, we are unable to predict with any certainty when any of these future milestones will occur, if at all.

PGN650

In October 1998, we exclusively in-licensed worldwide rights from UTSWMC, to certain patent families, which was amended in January 2000 to license patents related to aminophospholipid targeting conjugates, such as PGN650. Under the October 1998 license agreement, as amended, we are obligated to pay UTSWMC a future milestone payment of $300,000 upon the first commercial sale of a licensed aminophospholipid targeting conjugate such as PGN650, plus a low single digit royalty on net sales.

In addition, during fiscal year 2007, we entered into a research collaboration agreement and a development and commercialization agreement with Affitech A/S (“Affitech”) regarding the generation and commercialization of a certain number of fully human monoclonal antibodies under our platform technologies to be used as possible future clinical candidates, including the antibody of our imaging agent PGN650. During fiscal year 2013, under the terms of the development and commercialization agreement, we elected to enter into a license agreement for the PS-targeting antibody used to create PGN650, whereby we paid an up-front license fee and are obligated to pay future milestone payments of up to $1,921,000 based on the achievement of certain potential clinical development and regulatory milestones, plus a low single digit royalty on net sales.

During fiscal year 2013, we expensed $50,000 under in-licensing agreements covering PGN650, which is included in research and development expense in the accompanying consolidated statements of operations and comprehensive loss. We did not incur any milestone related expenses during fiscal years 2014 or 2012 covering PGN650. In addition, we do not expect to incur any milestone related expenses regarding our PGN650 program during fiscal year 2015.

Other In-Licensing Agreement Covering a Third-Party Product Development Program

During July 2009, we entered into a patent assignment and sublicense with Affitech whereby we out-licensed exclusive worldwide rights to develop and commercialize certain products under our anti-vascular endothelial growth factor (“VEGF”) intellectual property portfolio as further described in the “Out-Licensing Collaborations” section below. The underlying technology licensed to Affitech was in-licensed from UTSWMC in August 2001 under an exclusive worldwide license agreement. Under the UTSWMC license agreement, as amended, our aggregate future milestone obligations are $450,000 assuming the achievement of all development milestones by Affitech. We did not incur any milestone related expenses during the three years ended April 30, 2014. In addition, we do not anticipate making any milestone payments for at least the next fiscal year under the UTSWMC license agreement.

Out-Licensing Agreements

The following represents a summary of our key out-licensing agreements:

During October 2000, we entered into a licensing agreement with Merck KGaA to out-license a segment of our Tumor Necrosis Therapy technology for use in the application of cytokine fusion proteins. During January 2003, we entered into an amendment to the license agreement, whereby we received an extension to the royalty period from six years to ten years from the date of the first commercial sale. Under the terms of the agreement, we would receive a royalty on net sales if a product is approved under the agreement. Merck KGaA is currently in the clinical development stage of this program.

During July 2009, we entered into a patent assignment and sublicense (collectively, the “Affitech Agreements”) with Affitech whereby we licensed exclusive worldwide rights to develop and commercialize certain products under our anti-VEGF intellectual property portfolio, including the fully human antibody AT001/r84. In consideration for the rights granted under our anti-VEGF antibody technology platform, we received non-refundable up-front license fees of $250,000. In addition, we received aggregate milestone payments of $1,000,000 associated with the delivery of two preclinical development packages as defined in the Affitech Agreements. We could also receive up to $16,500,000 in future milestone payments based on the achievement of all clinical and regulatory milestones for product approval by Affitech or an affiliate, plus a royalty on net sales, as defined in the Affitech Agreements. These potential future milestone payments payable under the Affitech Agreements entail no performance obligations on our part and, accordingly, these payments will not be accounted for under the provisions of ASU No. 2010-17. Therefore, we expect to recognize revenue on the future potential milestone payments, if any, in accordance with the authoritative guidance for revenue recognition, either when the milestone is achieved, if our future obligations are considered inconsequential, or recognized as revenue on a straight-line basis over a performance obligation period, if continued performance or future obligations exist. To date, no clinical or regulatory milestones as defined in the Affitech Agreements have been achieved by Affitech or an affiliate. In addition, in the event Affitech enters into a sublicense agreement with a non-affiliate for the anti-VEGF technology platform, we shall receive a percentage of all payments received under any such sublicenses, which percentage is determined based on the clinical development stage of the technology platform at the time of any such sublicenses. In accordance with the authoritative guidance for revenue recognition, the license includes multiple elements that are not separable and, accordingly, are being accounted for as a single unit of accounting. In addition, we determined that our obligations would be up to a four-year period and therefore, we recognized the non-refundable up-front license fees of $250,000 and the additional $1,000,000 associated with other deliverables, as defined in the Affitech Agreements, on a straight-line basis over a four-year period through July 2013. We recognized revenue of $107,000, $350,000 and $350,000 during fiscal years 2014, 2013, and 2012 under the Affitech Agreements, which amounts are included in license revenue in the accompanying consolidated financial statements.

During September 2010, Peregrine and Affitech agreed to amend certain terms of the Affitech Agreements for sublicenses entered into by Affitech with non-affiliates for the territories of Brazil, Russia and other countries of the Commonwealth of Independent States (“CIS”) (“September 2010 Amendment”). Under the amended terms, Peregrine agreed to forego its aforementioned sublicense fee equal to forty-five percent (45%) of the payments received by Affitech (after Affitech deducts fifty percent (50%) of its incurred development costs under the program) for the territories of Brazil, Russia, and the CIS, provided however, that Affitech reinvests such sublicense payments toward the further development of AT001/r84 in those territories. In the event Affitech enters into a licensing transaction for AT001/r84 with a non-affiliate in a major pharmaceutical market (defined as U.S., European Union, Switzerland, United Kingdom and/or Japan), Affitech has agreed to reimburse us the aforementioned sublicense fees we agreed to forego that were applied to the AT001/r84 program while Affitech will be eligible to be reimbursed for up to 50% of their development costs in Brazil, Russia and CIS territories. The remaining terms of the Affitech Agreements remain unchanged, including milestone and royalty payments. To date, we have not received any payments from Affitech under the September 2010 Amendment.

6. STOCKHOLDERS' EQUITY

12 Months Ended

Apr. 30, 2014

Equity [Abstract]

6. STOCKHOLDERS' EQUITY

Adoption of a Stockholder Rights Agreement

On March 16, 2006, our Board of Directors adopted a Stockholder Rights Agreement (“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 Peregrine. The adoption of the Rights Agreement is not intended to prevent an offer the Board of Directors concludes is in the best interest of Peregrine 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 shareholders of record as of the close of business on March 27, 2006. Each Right will entitle holders of each share of our common stock to buy one thousandth (1/1,000th) of a share of Peregrine’s Series D Participating Preferred Stock, par value $0.001 per share, at an exercise price of $11.00 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 common stock of the Company (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.

Peregrine will be entitled to redeem the Rights at $0.001 per Right at any time prior to a person or group achieving the 15% threshold. The Rights will expire on March 16, 2016.

Sales of Common and Preferred Stock

Our ability to continue our clinical trials and development efforts is highly dependent on the amount of cash and cash equivalents on hand combined with our ability to raise additional capital to support our future operations through one or more methods, including but not limited to, issuing additional equity.

During the three fiscal years ended April 30, 2014, we issued common and preferred stock under the following agreements:

Sale of Common Stock

December 2010 AMI Agreement – On December 29, 2010, we entered into an At Market Sales Issuance Agreement (“December 2010 AMI Agreement”) with MLV & Co. LLC (“MLV”), pursuant to which, through MLV, as agent, we were able to sell shares of our common stock, from time to time at market prices, in registered transactions from our shelf registration statement on Form S-3 (File No. 333-171252) which was declared effective by the Securities and Exchange Commission (“SEC”) on January 5, 2011 (“January 2011 Shelf”), for aggregate gross proceeds of up to $75,000,000. During fiscal year 2012, we sold 24,873,930 shares of common stock at market prices under the December 2010 AMI Agreement for aggregate gross proceeds of $27,390,000 before deducting commissions and other issuance costs of $626,000. During fiscal year 2013, we sold 31,863,368 shares of common stock at market prices under the December 2010 AMI Agreement for aggregate gross proceeds of $27,382,000 before deducting commissions and other issuance costs of $895,000. As of April 30, 2013, we had raised the full amount of gross proceeds available to us under the December 2010 AMI Agreement.

September 2011 Registered Direct Public Offering – Under a registered direct public offering dated September 2, 2011, we entered into separate subscription agreements with three institutional investors, pursuant to which we sold an aggregate of 6,252,252 shares of our common stock at a purchase price of $1.11 per share for aggregate gross proceeds of $6,940,000 before deducting placement agent fees and other offering expenses of $525,000. These shares of common stock were sold under our January 2011 Shelf pursuant to a prospectus supplement filed with the SEC on September 2, 2011.

December 2012 AMI Agreement – On December 27, 2012, we entered into an At Market Sales Issuance Agreement (“December 2012 AMI Agreement”) with MLV, pursuant to which we may sell shares of our common stock through MLV, as agent, for aggregate gross proceeds of up to $75,000,000, in registered transactions from our shelf registration statement on Form S-3 (File No. 333-180028), which was declared effective by the SEC on April 12, 2012. During fiscal year 2013, we sold 9,320,675 shares of common stock at market prices under the December 2012 AMI Agreement for aggregate gross proceeds of $13,372,000 before deducting commissions and other issuance costs of $337,000. During fiscal year 2014, we sold 33,527,369 shares of common stock at market prices under the December 2012 AMI Agreement for aggregate gross proceeds of $55,424,000 before deducting commissions and other issuance costs of $1,504,000. As of April 30, 2014, aggregate gross proceeds of up to $6,204,000 remained available under the December 2012 AMI Agreement.

Sale of Preferred Stock

On February 11, 2014, we entered into an underwriting agreement (the “Underwriting Agreement”) with MLV, as representative for the underwriters identified therein (collectively, the “Underwriters”), providing for the offer and sale to the Underwriters in a firm commitment underwritten public offering of 700,000 shares (the “Firm Shares”) of our newly designated 10.50% Series E Convertible Preferred Stock, par value $0.001 per share (the “Series E Preferred Stock”), at a public offering price of $25.00 per share (the “Offering”). In addition, pursuant to the Underwriting Agreement, we also granted the Underwriters a 30-day option to purchase up to an additional 105,000 shares of our Series E Preferred Stock under this Offering at the public offering price less the underwriting discount to cover over-allotments, if any (“Overallotment Option”).

We completed the sale of the Firm Shares on February 19, 2014 for aggregate gross proceeds of $17,500,000, before deducting underwriting discounts and commissions and other offering expenses payable by us. In addition, on February 27, 2014, the Underwriters purchased an additional 75,000 shares of our Series E Preferred Stock upon partial exercise of the Overallotment Option at the public offering price of $25.00 per share for aggregate gross proceeds of $1,875,000, before deducting underwriting discounts and commissions and other offering related expenses payable by us. The aggregate gross proceeds we received from the Offering, including the partial exercise of the Overallotment Option, was $19,375,000, before deducting aggregate underwriting discounts and commissions and other offering related expenses of $1,458,000.

The Offering was made pursuant to a prospectus supplement filed with the SEC on February 12, 2014 to our registration statement on Form S-3 (File No. 333-193113) which was declared effective by the SEC on January 16, 2014. In addition, the Series E Preferred Stock is classified as permanent equity in accordance with FASB Accounting Standards Codification Topic 480, Distinguishing Liabilities from Equity.

Series E Preferred Stock Rights and Preferences

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 Series E Preferred Stock. The Certificate of Designations designates 2,000,000 shares of Series E Preferred Stock to be created out of our 5,000,000 shares of authorized but unissued shares of preferred stock. The rights and preferences of the Series E Preferred Stock include:

(i) The holders are entitled to receive a 10.50% per annum cumulative quarterly dividend, payable in cash, on or about the 1^stday of each of January, April, July, and October;

(ii) The dividend may increase to a penalty rate of 12.50% if: (a) we fail to pay dividends for any four consecutive or nonconsecutive quarterly dividend periods, or (b) once the Series E Preferred Stock becomes initially eligible for listing on a national securities exchange, we fail, for 180 or more consecutive days, to maintain such listing;

(iii) Following a change of control of the Company (as defined in the Certificate of Designations) by a person or entity, we (or the acquiring entity) may, at our option, redeem the Series E Preferred Stock, in whole but not in part, within 120 days after the date on which the change of control has occurred for cash, at the redemption price;

(iv) We may not redeem the Series E Preferred Stock prior to February 11, 2017 (except following a change of control) and, on and after February 11, 2017, we may redeem the Series E Preferred Stock for cash at our option, from time to time, in whole or in part, at the redemption price;

(v) The redemption price is $25.00 per share, plus any accrued and unpaid dividends (whether or not earned or declared) to, but excluding, the redemption date;

(vi) The liquidation preference is $25.00 per share, plus any accrued and unpaid dividends (whether or not earned or declared);

(vii) The Series E Preferred Stock has no stated maturity date or mandatory redemption and is senior to all of the Company’s other securities;

(viii) There is a general conversion right with respect to the Series E Preferred Stock with an initial conversion price of $3.00, a special conversion right upon a change of control, and a market trigger conversion at our option in the event of Market Trigger (as defined in the Certificate of Designations); and

(ix) The holders of the Series E Preferred Stock have no voting rights, except as defined in the Certificate of Designations.

The foregoing description does not purport to be complete and is qualified in its entirety by reference to the Certificate of Designations which was filed as Exhibit 3.11 to the Company’s Form 8-A filed with the SEC on February 12, 2014 and is incorporated herein by reference.

Series E Preferred Stock Dividend

On March 11, 2014, our Board of Directors declared a quarterly cash dividend of $0.2989 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 issuance on February 19, 2014 through March 31, 2014. The cash dividend of $232,000 was paid on April 1, 2014 to holders of the Series E Preferred Stock of record on March 21, 2014.

Shares Of Common Stock Authorized And Reserved For Future Issuance

We are authorized to issue up to 325,000,000 shares of our common stock. As of April 30, 2014, 178,871,164 shares of our common stock were issued and outstanding. In addition, our common stock outstanding as of April 30, 2014 excluded the following common shares reserved for future issuance:

	·	25,477,483 common shares reserved for issuance under outstanding option grants and available for issuance under our stock incentive plans;
	·	2,940,509 common shares reserved for and available for issuance under our Employee Stock Purchase Plan;
	·	273,280 common shares issuable upon exercise of outstanding warrants; and
	·	22,475,000 common shares issuable upon conversion of our outstanding Series E Preferred Stock ⁽¹⁾.

_____________

⁽¹⁾

The Series E Preferred Stock is convertible into shares of common stock at a conversion price of $3.00 per share. If all outstanding Series E Preferred Stock were converted at the $3.00 per share conversion price, the holders of Series E Preferred Stock would receive an aggregate of 6,458,333 shares of our common stock. However, we have reserved the maximum number of shares of our common stock that could be issued upon a change of control event assuming our shares of common stock are acquired for consideration of $0.855 per share or less. In this scenario, each outstanding share of Series E Preferred Stock could be converted into 29 shares of common stock, representing the Share Cap, as further described in the Certificate of Designations, filed as Exhibit 3.11 to the Company’s Form 8-A filed with the SEC on February 12, 2014.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

7. EQUITY COMPENSATION PLANS

12 Months Ended

Apr. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

7. EQUITY COMPENSATION PLANS

Stock Incentive Plans

We currently maintain seven stock incentive plans referred to as the 2011 Plan, the 2010 Plan, the 2009 Plan, the 2005 Plan, the 2003 Plan, the 2002 Plan, and the 1996 Plan (collectively referred to as the “Stock Plans”). The 2011, 2010, 2009, 2005, 2003 and 1996 Plans were approved by our stockholders while the 2002 Plan was not submitted for stockholder approval. The Stock Plans provide for the granting of stock options, restricted stock awards and other forms of share-based awards to purchase shares of our common stock at exercise prices not less than the fair market value of our common stock at the date of grant.

As of April 30, 2014, we had an aggregate of 25,477,483 shares of common stock reserved for issuance under the Stock Plans. Of those shares, 17,165,333 shares were subject to outstanding options and 8,312,150 shares were available for future grants of share-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. The options generally vest over a two to four year period and expire ten years from the date of grant, if unexercised. However, certain option awards provide for accelerated vesting if there is a change in control (as defined in the Stock Plans).

The fair value of each option grant is estimated using the Black-Scholes option valuation model and is amortized as 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. In addition, guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. 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, 2014, 2013 and 2012, were as follows:

	Year Ended April 30,
	2014		2013		2012
Risk-free interest rate		1.32%		0.96%		1.44%
Expected life (in years)		5.84		5.85		5.92
Expected volatility		113.92%		95.87%		74.08%
Expected dividend yield		–		–		–

The following summarizes our stock option transaction activity for fiscal year ended April 30, 2014:

Stock Options	Shares			Weighted Average Exercisable Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ⁽¹⁾
Outstanding, May 1, 2013		15,287,208		$	1.84
Granted		4,691,001		$	1.42
Exercised		(976,799	)	$	0.97
Canceled or expired		(1,836,077	)	$	3.69
Outstanding, April 30, 2014		17,165,333		$	1.58		7.70	$	8,753,000

Exercisable and expected to vest		17,051,359		$	1.58		7.69	$	8,711,000
Exercisable, April 30, 2014		12,295,355		$	1.69		7.29	$	6,393,000

______________

⁽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, 2014, which was $1.74 per share.

The weighted-average grant date fair value of options granted to employees during the fiscal years ended April 30, 2014, 2013 and 2012 was $1.19, $0.69 and $0.99 per share, respectively.

The aggregate intrinsic value of stock options exercised during the fiscal years ended April 30, 2014 and 2013 was $908,000 and $106,000, respectively. Cash received from stock options exercised during fiscal years ended April 30, 2014 and 2013, totaled $944,000 and $96,000, respectively, net of issuance costs of $4,000 and $2,000, respectively. No stock options were exercised during fiscal year ended April 30, 2012.

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, 2014, the total estimated unrecognized compensation cost related to non-vested stock options was $4,173,000. This cost is expected to be recognized over a weighted average vesting period of 1.08 years based on current assumptions.

Restricted Stock Awards - Restricted stock awards are grants that entitle the holder to shares of common stock subject to certain terms. The fair value of restricted stock awards is the quoted market price of our stock on the grant date, and is charged to expense over the period of vesting. Restricted stock awards associated with non-performance conditions vest over the requisite service period and restricted stock awards associated with performance conditions are subject to vesting upon completion of the underlying performance condition. Performance based restricted stock awards are subject to forfeiture if the underlying performance condition is not achieved and all restricted stock awards are subject to forfeiture to the extent that the recipient’s service is terminated prior to the awards becoming vested.

The following summarizes our restricted stock award transaction activity for fiscal year ended April 30, 2014:

Restricted Stock	Shares			Weighted Average Grant Date Fair Value
Unvested, May 1, 2013		–		$	–
Granted		100,000		$	1.39
Vested		(100,000	)	$	1.39
Forfeited		–		$	–
Unvested, April 30, 2014		–		$	–

The weighted-average grant date fair value of restricted stock awards granted and vested during fiscal year ended April 30, 2014 was $1.39 per share with an aggregate fair value of $139,000. No restricted stock awards were granted or vested during fiscal years ended April 30, 2013 and 2012. As of April 30, 2014, there were no restricted stock awards outstanding, and accordingly, there was no remaining unrecognized compensation cost.

Employee Stock Purchase Plan

On October 21, 2010, our stockholders approved our 2010 Employee Stock Purchase Plan (the “ESPP”). The ESPP allows eligible employees on a voluntary basis to purchase shares of our common stock directly from the Company. Under the ESPP, we will sell shares to participants at a price equal to the lesser of 85% of the fair market value of stock at the (i) beginning of a six-month offering period or (ii) end of the six-month offering period. The ESPP provides for two six-month offering periods each fiscal year; the first offering period will begin on the first trading day on or after each November 1; the second offering period will begin on the first trading day on or after each May 1.

A total of 5,000,000 shares are reserved for issuance under the ESPP, of which 2,940,509 shares remained available to purchase at April 30, 2014, and are subject to adjustment as provided in the ESPP for stock splits, stock dividends, recapitalizations and other similar events. During the fiscal years ended April 30, 2014, 2013 and 2012, 498,050, 998,556 and 458,041 shares of common stock were purchased, respectively, under the ESPP at a weighted average purchase price per share of $1.09, $0.53 and $0.52, respectively.

The fair value of the shares purchased under the ESPP were 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, 2014, 2013 and 2012 was $0.55, $0.40 and $0.46, respectively, based on the following Black-Scholes option valuation model inputs:

	Year Ended April 30,
	2014		2013		2012
Risk-free interest rate		0.08%		0.15%		0.06%
Expected life (in years)		0.50		0.50		0.50
Expected volatility		93.39%		167.36%		67.96%
Expected dividend yield		–		–		–

Share-based Compensation Expense

Total share-based compensation expense related to share-based awards issued under our equity compensation plans for the fiscal years ended April 30, 2014, 2013 and 2012 was comprised of the following:

	2014		2013		2012
Cost of contract manufacturing	$	68,000	$	89,000	$	12,000
Research and development		2,804,000		1,646,000		1,018,000
Selling, general and administrative		3,335,000		1,700,000		1,739,000
Total share-based compensation expense	$	6,207,000	$	3,435,000	$	2,769,000

Share-based compensation from:
Stock options	$	5,803,000	$	3,039,000	$	2,673,000
Restricted stock awards		139,000		–		–
Employee stock purchase plan		265,000		396,000		96,000
	$	6,207,000	$	3,435,000	$	2,769,000

The cost of non-employee services received in exchange for share-based awards are measured based on either the fair value of the consideration received or the fair value of the share-based award issued, whichever is more reliably measurable. In addition, the authoritative guidance requires share-based compensation related to unvested options and awards issued to non-employees to be recalculated at the end of each reporting period based upon the fair market value on that date until the share-based award has vested, and any adjustment to share-based compensation resulting from the re-measurement is recognized in the current period. Share-based compensation expense recorded during fiscal years ended April 30, 2014, 2013 and 2012 associated with stock options and awards granted to non-employees amounted to $391,000, $320,000 and $51,000, respectively.

Due to our net loss position, no tax benefits have been recognized in the consolidated statements of cash flows.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References+ Details

9. INCOME TAXES

12 Months Ended

Apr. 30, 2014

Income Tax Disclosure [Abstract]

9. 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 addition, in accordance with authoritative guidance, 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, 2014 and 2013. 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, 2014, 2013, and 2012, and we did not accrue for interest or penalties as of April 30, 2014 and 2013.

At April 30, 2014, we had total deferred tax assets of $126,922,000. 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 total deferred tax assets. The valuation allowance increased by $12,153,000 from $114,839,000 at April 30, 2013, to $126,992,000 at April 30, 2014 primarily due to additional net operating losses incurred during the current fiscal year. 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. During the fiscal year ended April 30, 2013, a Section 382 analysis was performed and it was determined that no change in ownership had occurred. As such, we included in our deferred tax assets all of the net operating loss carry forwards and have recorded a corresponding increase to our valuation allowance. No Section 382 analysis has been performed subsequent to April 30, 2013, and therefore, our net operating loss carry forwards may be subject to limitation based on events occurring during the fiscal year ended April 30, 2014, including any effect of our Series E Preferred Stock offering.

At April 30, 2014, we had federal net operating loss carry forwards of approximately $295,302,000. The net operating loss carry forwards expire in fiscal years 2019 through 2034. We also have state net operating loss carry forwards of approximately $223,347,000 at April 30, 2014, which begin to expire in fiscal year 2015. In addition, we have approximately $5,997,000 of net operating loss attributable to excess tax deductions on share-based compensation that when utilized, if any, the tax benefit will be booked to additional paid-in-capital.

The provision for income taxes consists of the following for the three years ended April 30,:

	2014			2013			2012
Provision for federal income taxes at statutory rate	$	(12,023,000	)	$	(10,125,000	)	$	(14,321,000	)
State income taxes ⁽¹⁾		(3,124,000	)		(2,631,000	)		(3,703,000	)
Expiration and adjustments of deferred tax assets ⁽¹⁾		2,751,000			(95,630,000	)		17,703,000
Change in valuation allowance		12,153,000			108,310,000			(95,000	)
Other, net		243,000			76,000			416,000
Income tax (expense) benefit	$	–		$	–		$	–

______________

(1)

For the fiscal years ended April 30, 2013 and 2012, we reclassified $2,633,000 and $3,723,000, respectively, from expiration and adjustments of deferred tax assets to state income taxes to conform to our fiscal year 2014 presentation of provision for income taxes.

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 at April 30, 2014 and 2013 are as follows:

	2014			2013

Share-based compensation	$	4,716,000		$	4,624,000
Deferred revenue		2,370,000			1,912,000
Depreciation and amortization		664,000			668,000
Accrued liabilities		1,650,000			1,677,000
Net operating losses		117,592,000			105,958,000

Total deferred tax assets		126,992,000			114,839,000
Less valuation allowance		(126,992,000	)		(114,839,000	)

Net deferred tax assets	$	–		$	–

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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10. BENEFIT PLAN	12 Months Ended
10. BENEFIT PLAN	Apr. 30, 2014
Compensation and Retirement Disclosure [Abstract]
10. BENEFIT PLAN	During fiscal year 1997, we adopted a 401(k) benefit plan (the “Plan”) for all full-time employees who are at least the age of 21 and have three or more months of continuous service. The Plan provides for employee contributions of up to 100% of their compensation on a tax deferred basis up to the maximum amount permitted by the Internal Revenue Code. We are not required to make matching contributions under the Plan and we have made no matching contributions to the Plan since its inception through December 2009. Effective January 2010, we voluntarily agreed to match 50% of employee contributions of up to the first 6% of a participant’s annual salary for all Plan contributions, subject to certain IRS limitations. Under the Plan, each participating employee is fully vested in his or her contributions to the Plan and our contributions to the Plan will fully vest after six years of service. The expense related to our matching contributions to the Plan was $300,000, $284,000, and $232,000 for the fiscal years ended April 30, 2014, 2013, and 2012, respectively.

11. SEGMENT REPORTING

12 Months Ended

Apr. 30, 2014

Segment Reporting [Abstract]

11. SEGMENT REPORTING

Our business is organized into two reportable operating segments and both operate in the U.S. Peregrine is engaged in the research and development of monoclonal antibodies for the treatment and diagnosis of cancer. Avid is engaged in providing contract manufacturing services for Peregrine and third-party customers on a fee-for-service basis.

The accounting policies of the operating segments are the same as those described in Note 2. We evaluate the performance of our contract manufacturing services segment based on gross profit or loss from third-party customers. However, our products in the research and development segment are not evaluated based on gross profit or loss, but rather based on scientific progress of the technologies. As such, gross profit or loss is only provided for our contract manufacturing services segment in the below table. All revenues shown below are derived from transactions with third-party customers.

Segment information for the fiscal years ended April 30, 2014, 2013 and 2012 is summarized as follows:

	2014			2013			2012
Contract manufacturing services revenue	$	22,294,000		$	21,333,000		$	14,783,000
Cost of contract manufacturing services		13,110,000			12,595,000			10,153,000
Gross profit	$	9,184,000		$	8,738,000		$	4,630,000

Revenue from products in research and development	$	107,000		$	350,000		$	450,000
Research and development expense		(27,723,000	)		(24,306,000	)		(35,688,000	)
Selling, general and administrative expense		(17,274,000	)		(13,134,000	)		(11,462,000	)
Other income (expense), net		344,000			268,000			(49,000	)
Loss on early extinguishment of debt		–			(1,696,000	)		–
Net loss	$	(35,362,000	)	$	(29,780,000	)	$	(42,119,000	)

Revenue generated from our contract manufacturing services segment during fiscal years ended April 30, 2014, 2013 and 2012 was derived from a limited number of customers. The percentages below represent revenue derived from each customer as a percentage of total contract manufacturing services revenue:

	2014		2013		2012

United States (customer A)		91%		81%		44%
United States (customer B)		1		17		–
Germany (one customer)		–		–		17
Denmark (one customer)		–		–		25
Other customers		8		2		14
Total		100%		100%		100%

Revenue generated from our products in our research and development segment during fiscal years ended April 30, 2014, 2013 and 2012 were directly related to license revenue recognized under licensing agreements with unrelated entities (Note 5).

Our long-lived assets consist of leasehold improvements, laboratory equipment, furniture and fixtures, office equipment and software and are net of accumulated depreciation. Long-lived assets by segment as of April 30, 2014 and 2013 consist of the following:

	2014		2013
Long-lived Assets, net:
Contract manufacturing services	$	1,956,000	$	2,039,000
Products in research and development		491,000		639,000
Total	$	2,447,000	$	2,678,000

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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12. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Apr. 30, 2014

Quarterly Financial Information Disclosure [Abstract]

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

Selected quarterly financial information for each of the two most recent fiscal years is as follows:

	Quarter Ended
	April 30,			January 31,			October 31,			July 31,			April 30,			January 31,			October 31,			July 31,
	2014			2014			2013			2013			2013			2013			2012			2012
Net revenues	$	6,474,000		$	3,885,000		$	7,354,000		$	4,688,000		$	4,254,000		$	7,039,000		$	6,139,000		$	4,251,000
Gross profit (a)	$	2,645,000		$	1,469,000		$	3,159,000		$	1,911,000		$	959,000		$	3,310,000		$	2,358,000		$	2,111,000
Loss from operations	$	(10,529,000	)	$	(9,743,000	)	$	(7,814,000	)	$	(7,620,000	)	$	(8,463,000	)	$	(5,161,000	)	$	(7,057,000	)	$	(7,671,000	)
Net loss (b)	$	(10,248,000	)	$	(9,724,000	)	$	(7,790,000	)	$	(7,600,000	)	$	(8,449,000	)	$	(4,914,000	)	$	(8,753,000	)	$	(7,664,000	)
Net loss attributable to common stockholders (c)	$	(10,649,000	)	$	(9,724,000	)	$	(7,790,000	)	$	(7,600,000	)	$	(8,449,000	)	$	(4,914,000	)	$	(8,753,000	)	$	(7,664,000	)
Basic and diluted loss per common share	$	(0.06	)	$	(0.06	)	$	(0.05	)	$	(0.05	)	$	(0.06	)	$	(0.04	)	$	(0.08	)	$	(0. 07)

________________

	(a)	Gross profit represents contract manufacturing revenue less cost of contract manufacturing.
	(b)	Net loss for the quarter ended October 31, 2012, includes a loss on the early extinguishment of debt of $1,696,000 (Note 3).
	(c)	Net loss attributable to common stockholders for the quarter ended April 30, 2014, includes Series E preferred stock accumulated dividends of $401,000.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

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13. SUBSEQUENT EVENTS

12 Months Ended

Apr. 30, 2014

Subsequent Events [Abstract]

13. SUBSEQUENT EVENTS

Broad Based Annual Grant of Stock Options

On May 6, 2014, our Compensation Committee of the Board of Directors approved a broad based annual grant of stock options for fiscal year 2015 to substantially all of our employees, non-employee directors and certain consultants to purchase an aggregate of 3,995,804 shares of common stock at an exercise price of $1.75. These stock options were granted under our 2011 Stock Incentive Plan and vest quarterly in equal installments over a two year period.

Series E Preferred Stock Dividend

On June 10, 2014, 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, 2014 through June 30, 2014. The cash dividend of $771,000 was paid on July 1, 2014 to holders of the Series E Preferred Stock of record on June 20, 2014.

Series E Preferred Stock AMI Agreement

On June 13, 2014, we entered into an At Market Issuance Sales Agreement (“Series E AMI Agreement”) with MLV, pursuant to which we may issue and sell shares of our Series E Preferred Stock through MLV, as agent, for aggregate gross proceeds of up to $30,000,000. The shares of our Series E Preferred Stock issuable under the Series E AMI Agreement are registered for sale to the public pursuant to a prospectus supplement filed on June 13, 2014 with the SEC in connection with a takedown from our shelf registration statement on Form S-3 (File No. 333-193113), which became effective on January 16, 2014. Subsequent to June 13, 2014 and through July 14, 2014, we sold 400,000 shares of our Series E Preferred Stock at market prices under the Series E AMI Agreement for aggregate gross proceeds of $10,000,000 before deducting commissions of $500,000. As of July 14, 2014, aggregate gross proceeds of up to $20,000,000 remained available under the Series E AMI Agreement.

Common Stock AMI Agreement

On June 13, 2014, we entered into a separate At Market Issuance Sales Agreement (“June 2014 AMI Agreement”), with MLV, pursuant to which we may sell shares of our common stock through MLV, as agent for aggregate gross proceeds of up to $25,000,000. The shares of our common stock issuable under the June 2014 AMI Agreement are registered for sale to the public pursuant to a prospectus supplement filed on June 13, 2014 with the SEC in connection with a takedown from our shelf registration statement on Form S-3 (File No. 333-180028), which became effective on April 12, 2012. As of July 14, 2014, we had not sold any shares of common stock under the June 2014 AMI Agreement.

SCHEDULE II - VALUATION OF QUALIFYING ACCOUNTS

12 Months Ended

Apr. 30, 2014

Valuation and Qualifying Accounts [Abstract]

SCHEDULE II - VALUATION OF QUALIFYING ACCOUNTS

VALUATION OF QUALIFYING ACCOUNTS

FOR EACH OF THE THREE YEARS IN THE PERIOD ENDED APRIL 30, 2014

	Balance at							Balance
	Beginning							at end
Description	of period		Additions		Deductions			of period
Valuation reserve for trade and other receivables, and unbilled amounts
Year ended April 30, 2012	$	112,000	$	–	$	(1,000	)	$	111,000
Year ended April 30, 2013	$	111,000	$	–	$	(3,000	)	$	108,000
Year ended April 30, 2014	$	108,000	$	–	$	(3,000	)	$	105,000

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Apr. 30, 2014

Accounting Policies [Abstract]

Basis of Presentation

The accompanying consolidated financial statements include the accounts of Peregrine and its wholly-owned subsidiary, Avid. All intercompany balances and transactions have been eliminated.

Use of Estimates

The preparation of our financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates.

Reclassification

Certain comparative amounts in our notes to consolidated financial statements for fiscal years 2013 and 2012 have been reclassified to conform to the current fiscal year presentation. These reclassifications had no effect on previously reported net loss or cash flows.

Liquidity and Financial Condition

At April 30, 2014, we had $77,490,000 in cash and cash equivalents. We have expended substantial funds on the research and development of our product candidates, and funding the operations of Avid. As a result, we have historically experienced negative cash flows from operations since our inception and we expect negative cash flows from operations to continue in the foreseeable future. Our net losses incurred during the past three fiscal years ended April 30, 2014, 2013 and 2012, amounted to $35,362,000, $29,780,000, and $42,119,000, respectively. Therefore, unless and until we are able to generate sufficient revenues from Avid’s contract manufacturing services and/or from the sale and/or licensing of our products under development, we expect such losses to continue in the foreseeable future.

Cash and Cash Equivalents

We consider all highly liquid, short-term investments with an initial maturity of three months or less to be cash equivalents.

Trade and Other Receivables

Trade receivables are recorded at the invoiced amount net of an allowance for doubtful accounts, if necessary. Other receivables are reported at amounts expected to be collected net of an allowance for doubtful accounts, if necessary. Trade and other receivables, net, at April 30, consist of the following:

	2014		2013
Trade receivables⁽¹⁾	$	1,219,000	$	1,642,000
Other receivables, net		113,000		20,000
Trade and other receivables, net	$	1,332,000	$	1,662,000

______________

⁽¹⁾Represents amounts billed for contract manufacturing services provided by Avid.

Allowance for Doubtful Accounts

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, 2014 and 2013, we determined an allowance for doubtful accounts of $13,000 and $16,000, respectively, was necessary with respect to trade and other receivables.

Inventories

Inventories are stated at the lower of cost or market and primarily include raw materials, direct labor and overhead costs (work-in-process) associated with our wholly owned subsidiary, Avid. Cost is determined by the first-in, first-out method. Inventories consist of the following at April 30,:

	2014		2013
Raw materials	$	2,370,000	$	2,169,000
Work-in-process		3,160,000		2,170,000
Total inventories	$	5,530,000	$	4,339,000

Property and Equipment, net

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.

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 and trade receivables. We maintain our 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 balances to the extent of the cash amount recorded on the accompanying consolidated balance sheet.

Comprehensive Loss

Comprehensive loss is defined as 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.

Impairment

Long-lived assets are reviewed for impairment in accordance with authoritative guidance for impairment or disposal of long-lived assets. Long-lived assets are reviewed for events or changes in circumstances, which indicate that their carrying value may not be recoverable. Long-lived assets are reported at the lower of carrying amount or fair value less cost to sell. For the fiscal years ended April 30, 2014 and 2013, there was no impairment of the value of our long-lived assets.

Fair Value of Financial Instruments

The carrying amounts in the accompanying consolidated balance sheet for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to their short-term maturities.

Fair Value Measurements

We determine fair value measurements in accordance with the authoritative guidance for fair value measurements and disclosures for all assets and liabilities within the scope of this guidance. This guidance, which among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. 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 – 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.

Customer Deposits

Customer deposits primarily represents advance billings and/or payments received from Avid’s third-party customers prior to the initiation of contract manufacturing services.

Revenue Recognition

Contract Manufacturing Revenue

License Revenue

If a licensing agreement includes multiple elements, a delivered item is considered a separate unit of accounting if both of the following criteria are met:

	1.	The delivered item has value to the licensing partner on a standalone basis based on the consideration of the relevant facts and circumstances for each agreement;
	2.	If the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially in the Company’s control.

	1.	The consideration is commensurate with either the entity’s performance to achieve the milestone or the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the entity’s performance to achieve the milestone;
	2.	The consideration relates solely to past performance; and
	3.	The consideration is reasonable relative to all of the deliverables and payment terms within the arrangement.

Any milestone payments received prior to satisfying these revenue recognition criteria were recorded as deferred revenue in the accompanying consolidated financial statements.

Research and Development Expenses

Research and development expenses primarily include (i) payroll and related costs, including share-based compensation, associated with research and development personnel, (ii) costs related to clinical trials and preclinical testing of our technologies under development, (iii) costs to develop and manufacture the product candidates, including raw materials and supplies, product testing, depreciation, and facility related expenses, (iv) expenses for research services provided by universities and contract laboratories, including sponsored research funding, and (v) other research and development expenses. Research and development expenses are charged to expense as incurred when these expenditures relate to our research and development efforts and have no alternative future uses.

Share-based Compensation

We account for stock options and other share-based awards granted under our equity compensation plans in accordance with the authoritative guidance for share-based compensation. The estimated fair value of share-based payments to employees in exchange for services is measured at the grant date, using a fair value based method, and is recognized as expense on a straight-line basis over the requisite service periods. Share-based compensation expense recognized during the period is based on the value of the portion of the share-based payment that is ultimately expected to vest during the period. Share-based compensation expense for a share-based payment with a performance condition is recognized on a straight-line basis over the requisite service period when the achievement of the performance condition is determined to be probable. If a performance condition is not determined to be probable or is not met, no share-based compensation is recognized and any previously recognized compensation expense is reversed.

Income Taxes

We utilize the liability method of accounting for income taxes in accordance with authoritative guidance for accounting for income taxes. Under the liability method, deferred taxes are determined based on the differences between the consolidated financial statements and tax basis of assets and liabilities using enacted tax rates. A valuation allowance is provided when it is more likely than not that some portion or the entire deferred tax asset will not be realized. See Note 9 for further discussion regarding income taxes.

Basic and Dilutive 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 common shares outstanding during the period excluding the dilutive effects of stock options, common shares expected to be issued under our employee stock purchase plan, warrants, and convertible 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 common shares outstanding during the period plus the potential dilutive effects of stock options, common shares expected to be issued under our employee stock purchase plan, warrants, and convertible 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).

	2014		2013		2012
Stock options		4,576,112		3,505,777		96,591
Employee stock purchase plan		72,896		307,501		110,469
Warrants		3,802		–		–
Total		4,652,810		3,813,278		207,060

Adoption of Recent Accounting Pronouncements

Pending Adoption of Recent Accounting Pronouncements

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Apr. 30, 2014

Accounting Policies [Abstract]

Trade and Other Receivables

	2014		2013
Trade receivables⁽¹⁾	$	1,219,000	$	1,642,000
Other receivables, net		113,000		20,000
Trade and other receivables, net	$	1,332,000	$	1,662,000

Inventories

	2014		2013
Raw materials	$	2,370,000	$	2,169,000
Work-in-process		3,160,000		2,170,000
Total inventories	$	5,530,000	$	4,339,000

Antidilutive Shares

	2014		2013		2012
Stock options		4,576,112		3,505,777		96,591
Employee stock purchase plan		72,896		307,501		110,469
Warrants		3,802		–		–
Total		4,652,810		3,813,278		207,060

3. NOTE PAYABLE AND CAPITAL LEASE OBLIGATIONS (Tables)

12 Months Ended

Apr. 30, 2014

Debt and Capital Lease Obligations [Abstract]

Equipment purchased under these capital leases

	2014			2013
Furniture, fixtures, office equipment and software	$	258,000		$	258,000
Less accumulated depreciation and amortization		(200,000	)		(148,000	)
Net book value	$	58,000		$	110,000

Minimum future capital lease payments


Year ending April 30, 2015:	$	13,000

Total minimum lease payments		13,000
Amount representing interest		–
Net present value minimum lease payments		13,000
Less current portion included in other current liabilities		(13,000	)
Long-term portion included in other long-term liabilities	$	–

7. EQUITY COMPENSATION PLANS (Tables)

12 Months Ended

Apr. 30, 2014

Schedule of stock option transaction activity

Stock Options	Shares			Weighted Average Exercisable Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ⁽¹⁾
Outstanding, May 1, 2013		15,287,208		$	1.84
Granted		4,691,001		$	1.42
Exercised		(976,799	)	$	0.97
Canceled or expired		(1,836,077	)	$	3.69
Outstanding, April 30, 2014		17,165,333		$	1.58		7.70	$	8,753,000

Exercisable and expected to vest		17,051,359		$	1.58		7.69	$	8,711,000
Exercisable, April 30, 2014		12,295,355		$	1.69		7.29	$	6,393,000

Summary of restricted stock award activity

Restricted Stock	Shares			Weighted Average Grant Date Fair Value
Unvested, May 1, 2013		–		$	–
Granted		100,000		$	1.39
Vested		(100,000	)	$	1.39
Forfeited		–		$	–
Unvested, April 30, 2014		–		$	–

Share-based compensation expense

	2014		2013		2012
Cost of contract manufacturing	$	68,000	$	89,000	$	12,000
Research and development		2,804,000		1,646,000		1,018,000
Selling, general and administrative		3,335,000		1,700,000		1,739,000
Total share-based compensation expense	$	6,207,000	$	3,435,000	$	2,769,000

Share-based compensation from:
Stock options	$	5,803,000	$	3,039,000	$	2,673,000
Restricted stock awards		139,000		–		–
Employee stock purchase plan		265,000		396,000		96,000
	$	6,207,000	$	3,435,000	$	2,769,000

Stock Options

Fair value valuation assumptions

	Year Ended April 30,
	2014		2013		2012
Risk-free interest rate		1.32%		0.96%		1.44%
Expected life (in years)		5.84		5.85		5.92
Expected volatility		113.92%		95.87%		74.08%
Expected dividend yield		–		–		–

Employee Stock Purchase Plan

Fair value valuation assumptions

	Year Ended April 30,
	2014		2013		2012
Risk-free interest rate		0.08%		0.15%		0.06%
Expected life (in years)		0.50		0.50		0.50
Expected volatility		93.39%		167.36%		67.96%
Expected dividend yield		–		–		–

9. INCOME TAXES (Tables)

12 Months Ended

Apr. 30, 2014

Income Tax Disclosure [Abstract]

Provision for income taxes

	2014			2013			2012
Provision for federal income taxes at statutory rate	$	(12,023,000	)	$	(10,125,000	)	$	(14,321,000	)
State income taxes ⁽¹⁾		(3,124,000	)		(2,631,000	)		(3,703,000	)
Expiration and adjustments of deferred tax assets ⁽¹⁾		2,751,000			(95,630,000	)		17,703,000
Change in valuation allowance		12,153,000			108,310,000			(95,000	)
Other, net		243,000			76,000			416,000
Income tax (expense) benefit	$	–		$	–		$	–

______________

(1)

Deferred income taxes

	2014			2013

Share-based compensation	$	4,716,000		$	4,624,000
Deferred revenue		2,370,000			1,912,000
Depreciation and amortization		664,000			668,000
Accrued liabilities		1,650,000			1,677,000
Net operating losses		117,592,000			105,958,000

Total deferred tax assets		126,992,000			114,839,000
Less valuation allowance		(126,992,000	)		(114,839,000	)

Net deferred tax assets	$	–		$	–

11. SEGMENT REPORTING (Tables)

12 Months Ended

Apr. 30, 2014

Segment Reporting [Abstract]

Segment information

	2014			2013			2012
Contract manufacturing services revenue	$	22,294,000		$	21,333,000		$	14,783,000
Cost of contract manufacturing services		13,110,000			12,595,000			10,153,000
Gross profit	$	9,184,000		$	8,738,000		$	4,630,000

Revenue from products in research and development	$	107,000		$	350,000		$	450,000
Research and development expense		(27,723,000	)		(24,306,000	)		(35,688,000	)
Selling, general and administrative expense		(17,274,000	)		(13,134,000	)		(11,462,000	)
Other income (expense), net		344,000			268,000			(49,000	)
Loss on early extinguishment of debt		–			(1,696,000	)		–
Net loss	$	(35,362,000	)	$	(29,780,000	)	$	(42,119,000	)

Customer Revenue

	2014		2013		2012

United States (customer A)		91%		81%		44%
United States (customer B)		1		17		–
Germany (one customer)		–		–		17
Denmark (one customer)		–		–		25
Other customers		8		2		14
Total		100%		100%		100%

Long-lived assets

	2014		2013
Long-lived Assets, net:
Contract manufacturing services	$	1,956,000	$	2,039,000
Products in research and development		491,000		639,000
Total	$	2,447,000	$	2,678,000

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References+ Details

12. SELECTED QUARTERLY FINANCIAL DATA (Tables)

12 Months Ended

Apr. 30, 2014

Quarterly Financial Information Disclosure [Abstract]

Selected quarterly financial information for each of the two most recent fiscal

	Quarter Ended
	April 30,			January 31,			October 31,			July 31,			April 30,			January 31,			October 31,			July 31,
	2014			2014			2013			2013			2013			2013			2012			2012
Net revenues	$	6,474,000		$	3,885,000		$	7,354,000		$	4,688,000		$	4,254,000		$	7,039,000		$	6,139,000		$	4,251,000
Gross profit (a)	$	2,645,000		$	1,469,000		$	3,159,000		$	1,911,000		$	959,000		$	3,310,000		$	2,358,000		$	2,111,000
Loss from operations	$	(10,529,000	)	$	(9,743,000	)	$	(7,814,000	)	$	(7,620,000	)	$	(8,463,000	)	$	(5,161,000	)	$	(7,057,000	)	$	(7,671,000	)
Net loss (b)	$	(10,248,000	)	$	(9,724,000	)	$	(7,790,000	)	$	(7,600,000	)	$	(8,449,000	)	$	(4,914,000	)	$	(8,753,000	)	$	(7,664,000	)
Net loss attributable to common stockholders (c)	$	(10,649,000	)	$	(9,724,000	)	$	(7,790,000	)	$	(7,600,000	)	$	(8,449,000	)	$	(4,914,000	)	$	(8,753,000	)	$	(7,664,000	)
Basic and diluted loss per common share	$	(0.06	)	$	(0.06	)	$	(0.05	)	$	(0.05	)	$	(0.06	)	$	(0.04	)	$	(0.08	)	$	(0. 07)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Receivables) (USD $)	Apr. 30, 2014	Apr. 30, 2013
Accounting Policies [Abstract]
Trade receivables	$ 1,219,000	$ 1,642,000
Other receivables, net	113,000	20,000
Trade and other receivables, net	$ 1,332,000	$ 1,662,000

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Inventories) (USD $)	Apr. 30, 2014	Apr. 30, 2013
Accounting Policies [Abstract]
Raw materials	$ 2,370,000	$ 2,169,000
Work-in-process	3,160,000	2,170,000
Total inventories	$ 5,530,000	$ 4,339,000

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $)	3 Months Ended								12 Months Ended
	Apr. 30, 2014	Jan. 31, 2014	Oct. 31, 2013	Jul. 31, 2013	Apr. 30, 2013	Jan. 31, 2013	Oct. 31, 2012	Jul. 31, 2012	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2012	Apr. 30, 2011
Cash and cash equivalents	$ 77,490,000				$ 35,204,000				$ 77,490,000	$ 35,204,000	$ 18,033,000	$ 23,075,000
Net losses	(10,248,000)	(9,724,000)	(7,790,000)	(7,600,000)	(8,449,000)	(4,914,000)	(8,753,000)	(7,664,000)	(35,362,000)	(29,780,000)	(42,119,000)
Allowance for doubtful accounts - trade and other receivables	13,000				16,000				13,000	16,000
Allowance for doubtful accounts - unbilled Indirect Rates	$ 92,000				$ 92,000				$ 92,000	$ 92,000
Estimated useful lives of property and equipment									3 to 10 years
Concentration of trade receivables percentage									100.00%	100.00%	100.00%
Stock Options and Warrants
Shares excluded from weighted average diluted shares outstanding									5,424,803	5,860,305	5,970,393
Conversion of Series E Preferred Stock
Shares excluded from weighted average diluted shares outstanding									1,253,452
Accounts Receivable [Member] \| Two Customers [Member]
Concentration of trade receivables percentage									99.00%	97.00%

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References+ Details

- Definition

Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Excludes cash and cash equivalents within disposal group and discontinued operation.

+ References+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References+ Details

3. NOTE PAYABLE AND CAPITAL LEASE OBLIGATIONS (Details - Capital lease property) (USD $)	Apr. 30, 2014	Apr. 30, 2013
Debt and Capital Lease Obligations [Abstract]
Furniture, fixtures, office equipment and software	$ 258,000	$ 258,000
Less accumulated depreciation and amortization	(200,000)	(148,000)
Net book value	$ 58,000	$ 110,000

3. NOTE PAYABLE AND CAPITAL LEASE OBLIGATIONS (Details - Capital lease payments) (USD $)	Apr. 30, 2014
Debt and Capital Lease Obligations [Abstract]
Year ending April 30, 2015	$ 13,000
Total minimum lease payments	13,000
Amount representing interest	0
Net present value minimum lease payments	13,000
Less current portion included in other current liabilities	(13,000)
Long-term portion included in other long-term liabilities	$ 0

- Definition

Amount equal to the present value (the principal) at the beginning of the lease term of minimum lease payments during the lease term (excluding that portion of the payments representing executory costs such as insurance, maintenance, and taxes to be paid by the lessor, together with any profit thereon) net of payments or other amounts applied to the principal, through the balance sheet date and due to be paid more than one year (or one operating cycle, if longer) after the balance sheet date.

+ References+ Details

4. COMMITMENTS AND CONTINGENCIES (Details) (USD $)	Apr. 30, 2014
Commitments and Contingencies Disclosure [Abstract]
2015	$ 1,079,000
2016	1,079,000
2017	1,068,000
2018	730,000
2019	0
Operating Leases, Future Minimum Payments Due	$ 3,956,000

5. LICENSING AGREEMENTS (Details) (USD $)	12 Months Ended
5. LICENSING AGREEMENTS (Details) (USD $)	Apr. 30, 2014
Total Milestone Obligations Expensed To Date	$ 922,000
Potential Future Milestone Obligations	6,675,000
Milestone obligations expensed	125,000
UTSWMC August 2001
Total Milestone Obligations Expensed To Date	173,000
Potential Future Milestone Obligations	300,000
UTSWMC August 2005
Total Milestone Obligations Expensed To Date	85,000
Potential Future Milestone Obligations	375,000
Lonza March 2005
Total Milestone Obligations Expensed To Date	64,000
Potential Future Milestone Obligations	(2)
Avanir December 2003
Total Milestone Obligations Expensed To Date	100,000
Potential Future Milestone Obligations	1,000,000
Genentech November 2003
Total Milestone Obligations Expensed To Date	500,000
Potential Future Milestone Obligations	$ 5,000,000

6. STOCKHOLDERS' EQUITY (Details Narrative) (USD $)	12 Months Ended
6. STOCKHOLDERS' EQUITY (Details Narrative) (USD $)	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2012
Proceeds from sale of preferred stock	$ 17,917,000	$ 0	$ 0
December 2010 AMI Agreement
Common stock sold, shares		31,863,368	24,873,930
Proceeds from sale of common stock		27,382,000	27,390,000
Issuance costs		895,000	626,000
December 2012 AMI Agreement
Common stock sold, shares	33,527,369	9,320,675
Proceeds from sale of common stock	55,424,000	13,372,000
Issuance costs	1,504,000	337,000
Proceeds remaining under the agreement	6,204,000
Series E Preferred Stock [Member]
Issuance costs	1,458,000
Proceeds from sale of preferred stock	19,375,000
Series E Preferred Stock dividend paid	$ 232,000
Common shares reserved for issuance	22,475,000
Stock Incentive Plans [Member]
Common shares reserved for issuance	25,477,483
Employee Stock Purchase Plan [Member]
Common shares reserved for issuance	2,940,509
Warrants
Common shares reserved for issuance	273,280

7. EQUITY COMPENSATION PLANS (Details - Assumptions) (Stock Options)	12 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2012
Stock Options
Risk-free interest rate	1.32%	0.96%	1.44%
Expected life (in years)	5 years 10 months 2 days	5 years 10 months 6 days	5 years 11 months 1 day
Expected volatility	113.92%	95.87%	74.08%
Expected dividend yield	0.00%	0.00%	0.00%

7. EQUITY COMPENSATION PLANS (Details - Option activity) (Stock Options, USD $)	12 Months Ended
	Apr. 30, 2014
Stock Options
Number of Options
Number of Options Outstanding, Beginning	15,287,208
Number of Options Granted	4,691,001
Number of Options Exercised	(976,799)
Number of Options Cancelled or Expired	(1,836,077)
Number of Options Outstanding, Ending	17,165,333
Exercisable and expected to vest	17,051,359
Exercisable, April 30, 2013	12,295,355
Weighted Average Exercise Price
Weighted Average Exercise Price Outstanding, Beginning	$ 1.84
Weighted Average Exercise Price Granted	$ 1.42
Weighted Average Exercise Price Exercised	$ 0.97
Weighted Average Exercise Price Canceled	$ 3.69
Weighted Average Exercise Price Outstanding, Ending	$ 1.58
Weighted Average Exercise Price, Exercisable and expected to vest	$ 1.58
Weighted Average Exercise Price Exercisable, April 30, 2014	$ 1.69
Weighted Average Remaining Contractual Life (in years)
Weighted Average Remaining Contractual Life (in years) Outstanding, Beginning	7 years 8 months 12 days
Weighted Average Remaining Contractual Life (in years) Vested and expected to vest	7 years 8 months 8 days
Weighted Average Remaining Contractual Life (in years) Exercisable, April 30, 2014	7 years 3 months 14 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value Outstanding	$ 8,753,000
Aggregate Intrinsic Value vested and expected to vest	8,711,000
Aggregate Intrinsic Value Exercisable, April 30, 2014	$ 6,393,000

7. EQUITY COMPENSATION PLANS (Details - Restricted stock awards activity) (Restricted Stock Awards [Member], USD $)	12 Months Ended
	Apr. 30, 2014
Restricted Stock Awards [Member]
Restricted Stock unvested, beginning	0
Granted	100,000
Vested	(100,000)
Forfeited	0
Restricted Stock unvested, ending	0
Weighted average grant date fair value, beginning	$ 0.00
Granted	$ 1.39
Vested	$ 1.39
Forfeited	$ 0.00
Weighted average grant date fair value, ending	$ 0.00

7. EQUITY COMPENSATION PLANS (Details - Assumptions Employss Stock Purchase Plan) (Employee Stock Purchase Plan)	12 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2012
Employee Stock Purchase Plan
Risk-free interest rate	0.08%	0.15%	0.06%
Expected life (in years)	6 months	6 months	6 months
Expected volatility	93.39%	167.36%	67.96%
Expected dividend yield	0.00%	0.00%	0.00%

8. WARRANTS (Details) (Warrants)	12 Months Ended
8. WARRANTS (Details) (Warrants)	Apr. 30, 2014	Apr. 30, 2013
Warrants
Warrants outstanding	273,280
Warrants issued	0	0
Warrants exercised	0	118,444

9. INCOME TAXES (Details - Provision for Income taxes) (USD $)	12 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2012
Income Tax Disclosure [Abstract]
Provision for federal income taxes at statutory rate	$ (12,023,000)	$ (10,125,000)	$ (14,321,000)
State income taxes	(3,124,000)	(2,631,000)	(3,703,000)
Expiration and adjustments of deferred tax assets	2,751,000	(95,630,000)	17,703,000
Change in valuation allowance	12,153,000	108,310,000	(95,000)
Other, net	243,000	76,000	416,000
Income tax (expense) benefit	$ 0	$ 0	$ 0

- Definition

Amount of current federal tax expense (benefit) pertaining to income (loss) from continuing operations.

+ References+ Details

- Definition

Amount of current state and local tax expense (benefit) pertaining to income (loss) from continuing operations.

+ References+ Details

9. INCOME TAXES (Details - Deferred income taxes) (USD $)	Apr. 30, 2014	Apr. 30, 2013
Income Tax Disclosure [Abstract]
Share-based compensation	$ 4,716,000	$ 4,624,000
Deferred revenue	2,370,000	1,912,000
Depreciation and amortization	664,000	668,000
Accrued liabilities	1,650,000	1,677,000
Net operating losses	117,592,000	105,958,000
Total deferred tax assets	126,992,000	114,839,000
Less valuation allowance	(126,992,000)	(114,839,000)
Net deferred tax assets	$ 0	$ 0

9. INCOME TAXES (Details Narrative) (USD $)	12 Months Ended
9. INCOME TAXES (Details Narrative) (USD $)	Apr. 30, 2014
Net operating loss attributable to excess tax deductions on share-based compensation	$ 5,997,000
State and Local Jurisdiction [Member]
Net operating loss carry forward	223,347,000
Operating loss carryforward expiration dates	2015
Domestic Country [Member]
Net operating loss carry forward	$ 295,302,000
Operating loss carryforward expiration dates	2019 through 2034

11. SEGMENT REPORTING (Details) (USD $)	3 Months Ended								12 Months Ended
11. SEGMENT REPORTING (Details) (USD $)	Apr. 30, 2014	Jan. 31, 2014	Oct. 31, 2013	Jul. 31, 2013	Apr. 30, 2013	Jan. 31, 2013	Oct. 31, 2012	Jul. 31, 2012	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2012
Segment Reporting [Abstract]
Contract manufacturing services revenue									$ 22,294,000	$ 21,333,000	$ 14,783,000
Cost of contract manufacturing services									13,110,000	12,595,000	10,153,000
Gross profit	2,645,000	1,469,000	3,159,000	1,911,000	959,000	3,310,000	2,358,000	2,111,000	9,184,000	8,738,000	4,630,000
Revenue from products in research and development									107,000	350,000	450,000
Research and development expense									(27,723,000)	(24,306,000)	(35,688,000)
Selling, general and administrative expense									(17,274,000)	(13,134,000)	(11,462,000)
Other income (expense), net									344,000	268,000	(49,000)
Loss on early extinguishment of debt									0	(1,696,000)	0
Net loss	$ (10,248,000)	$ (9,724,000)	$ (7,790,000)	$ (7,600,000)	$ (8,449,000)	$ (4,914,000)	$ (8,753,000)	$ (7,664,000)	$ (35,362,000)	$ (29,780,000)	$ (42,119,000)

11. SEGMENT REPORTING (Details - Percentage breakdown)	12 Months Ended
11. SEGMENT REPORTING (Details - Percentage breakdown)	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2012
Customer revenue as a percentage of revenue	100.00%	100.00%	100.00%
United States (Customer A)
Customer revenue as a percentage of revenue	91.00%	81.00%	44.00%
United States (Customer B)
Customer revenue as a percentage of revenue	1.00%	17.00%	0.00%
Germany (1 Customer)
Customer revenue as a percentage of revenue	0.00%	0.00%	17.00%
Denmark (1 Customer)
Customer revenue as a percentage of revenue	0.00%	0.00%	25.00%
Other Customers
Customer revenue as a percentage of revenue	8.00%	2.00%	14.00%

12. SELECTED QUARTERLY FINANCIAL DATA (Details) (USD $)	3 Months Ended								12 Months Ended
12. SELECTED QUARTERLY FINANCIAL DATA (Details) (USD $)	Apr. 30, 2014	Jan. 31, 2014	Oct. 31, 2013	Jul. 31, 2013	Apr. 30, 2013	Jan. 31, 2013	Oct. 31, 2012	Jul. 31, 2012	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2012
Quarterly Financial Information Disclosure [Abstract]
Net revenues	$ 6,474,000	$ 3,885,000	$ 7,354,000	$ 4,688,000	$ 4,254,000	$ 7,039,000	$ 6,139,000	$ 4,251,000	$ 22,401,000	$ 21,683,000	$ 15,233,000
Gross profit	2,645,000	1,469,000	3,159,000	1,911,000	959,000	3,310,000	2,358,000	2,111,000	9,184,000	8,738,000	4,630,000
Loss from operations	(10,529,000)	(9,743,000)	(7,814,000)	(7,620,000)	(8,463,000)	(5,161,000)	(7,057,000)	(7,671,000)
Net loss	(10,248,000)	(9,724,000)	(7,790,000)	(7,600,000)	(8,449,000)	(4,914,000)	(8,753,000)	(7,664,000)	(35,362,000)	(29,780,000)	(42,119,000)
Net loss attributable to common stockholders	$ (10,649,000)	$ (9,724,000)	$ (7,790,000)	$ (7,600,000)	$ (8,449,000)	$ (4,914,000)	$ (8,753,000)	$ (7,664,000)	$ (35,763,000)	$ (29,780,000)	$ (42,119,000)
Basic and diluted loss per common share	$ (0.06)	$ (0.06)	$ (0.05)	$ (0.05)	$ (0.06)	$ (0.04)	$ (0.08)	$ (0.07)	$ (0.22)	$ (0.25)	$ (0.50)

- Definition

Amount of income (loss) from continuing operations attributable to the parent. Also defined as revenue less expenses and taxes from ongoing operations before extraordinary items but after deduction of those portions of income or loss from continuing operations that are allocable to noncontrolling interests.

+ References+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References+ Details

SCHEDULE II - VALUATION (Details) (USD $)	12 Months Ended
SCHEDULE II - VALUATION (Details) (USD $)	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2012
Valuation and Qualifying Accounts [Abstract]
Valuation reserve, beginning balance	$ 108,000	$ 111,000	$ 112,000
Additions	0	0	0
Deductions	(3,000)	(3,000)	(1,000)
Valuation reserve, ending balance	$ 105,000	$ 108,000	$ 111,000

11. SEGMENT REPORTING (Details - Long-lived assets) (USD $)	Apr. 30, 2014	Apr. 30, 2013
Total Long-lived assets	$ 2,447,000	$ 2,678,000
Manufacturing Facility [Member]
Total Long-lived assets	1,956,000	2,039,000
Research and Development Expense [Member]
Total Long-lived assets	$ 491,000	$ 639,000

10. BENEFIT PLAN (Details Narrative) (USD $)	12 Months Ended
10. BENEFIT PLAN (Details Narrative) (USD $)	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2012
Compensation and Retirement Disclosure [Abstract]
Matching contributions	$ 300,000	$ 284,000	$ 232,000