Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Apr. 30, 2015	Jul. 10, 2015	Oct. 31, 2014
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, 2015
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			$ 271,018,730
Entity Common Stock, Shares Outstanding		199,934,918
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2015

CONSOLIDATED BALANCE SHEETS (USD $)	Apr. 30, 2015	Apr. 30, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 68,001,000	$ 77,490,000
Trade and other receivables, net	3,813,000	1,332,000
Inventories	7,354,000	5,530,000
Prepaid expenses and other current assets, net	1,355,000	1,419,000
Total current assets	80,523,000	85,771,000
PROPERTY AND EQUIPMENT:
Leasehold improvements	1,538,000	1,538,000
Laboratory equipment	5,965,000	5,646,000
Furniture, fixtures, office equipment and software	3,991,000	2,679,000
Construction-in-progress	11,819,000	0
Property and equipment, gross	23,313,000	9,863,000
Less accumulated depreciation and amortization	(8,189,000)	(7,416,000)
Property and equipment, net	15,124,000	2,447,000
Other assets	1,817,000	2,327,000
TOTAL ASSETS	97,464,000	90,545,000
CURRENT LIABILITIES:
Accounts payable	10,385,000	2,434,000
Accrued clinical trial and related fees	3,910,000	4,433,000
Accrued payroll and related costs	4,606,000	3,837,000
Deferred revenue, current portion	6,630,000	5,241,000
Customer deposits	11,363,000	5,760,000
Other current liabilities	437,000	502,000
Total current liabilities	37,331,000	22,207,000
Deferred revenue, less current portion	0	292,000
Deferred rent, less current portion	1,098,000	347,000
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred stock - $.001 par value; authorized 5,000,000 shares; issued and outstanding - 1,574,764 and 775,000, respectively	2,000	1,000
Common stock - $.001 par value; authorized 325,000,000 shares; issued and outstanding - 193,346,627 and 178,871,164, respectively	193,000	179,000
Additional paid-in-capital	512,464,000	470,785,000
Accumulated deficit	(453,624,000)	(403,266,000)
Total stockholders' equity	59,035,000	67,699,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 97,464,000	$ 90,545,000

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Apr. 30, 2015	Apr. 30, 2014
Statement of Financial Position [Abstract]
Preferred stock par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	1,574,764	775,000
Preferred stock, shares outstanding	1,574,764	775,000
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	193,346,627	178,871,164
Common stock, shares outstanding	193,346,627	178,871,164

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
REVENUES:
Contract manufacturing revenue	$ 26,744,000	$ 22,294,000	$ 21,333,000
License revenue	37,000	107,000	350,000
Total revenues	26,781,000	22,401,000	21,683,000
COSTS AND EXPENSES:
Cost of contract manufacturing	15,593,000	13,110,000	12,595,000
Research and development	42,996,000	27,723,000	24,306,000
Selling, general and administrative	18,691,000	17,274,000	13,134,000
Total costs and expenses	77,280,000	58,107,000	50,035,000
LOSS FROM OPERATIONS	(50,499,000)	(35,706,000)	(28,352,000)
OTHER INCOME (EXPENSE):
Interest and other income	142,000	349,000	322,000
Interest and other expense	(1,000)	(5,000)	(54,000)
Loss on early extinguishment of debt	0	0	(1,696,000)
NET LOSS	(50,358,000)	(35,362,000)	(29,780,000)
COMPREHENSIVE LOSS	(50,358,000)	(35,362,000)	(29,780,000)
Series E preferred stock accumulated dividends	(3,696,000)	(401,000)	0
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ (54,054,000)	$ (35,763,000)	$ (29,780,000)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic and Diluted	182,558,332	161,579,649	120,370,333
BASIC AND DILUTED LOSS PER COMMON SHARE	$ (0.30)	$ (0.22)	$ (0.25)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $)	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning Balance, Value at Apr. 30, 2012		$ 101,000	$ 347,506,000	$ (338,124,000)	$ 9,483,000
Beginning Balance, Shares at Apr. 30, 2012		101,421,365
Stock issued for cash, net of issuance costs, Shares		31,863,368
Stock issued for cash, net of issuance costs, value		32,000	26,455,000		26,487,000
Common stock issued for cash, net of issuance cost, shares		9,320,675
Common stock issued for cash, net of issuance cost, value		9,000	13,026,000		13,035,000
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
Common stock issued upon exercise of options,shares		118,555
Common stock issued upon exercise of options, value			96,000		96,000
Common stock issued upon exercise of warrants,shares		46,427
Common stock issued upon exercise of warrants, value
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
Series E preferred stock issued for cash, net of issuance costs, shares	775,000
Series E preferred stock issued for cash, net of issuance costs, value	1,000		17,916,000		17,917,000
Series E preferred stock dividends, shares
Series E preferred stock dividends, value			(232,000)		(232,000)
Common stock issued for cash, net of issuance cost, shares		33,527,369
Common stock issued for cash, net of issuance cost, value		34,000	53,886,000		53,920,000
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
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 restricted stock awards, value
Share-based compensation			6,207,000		6,207,000
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
Series E preferred stock issued for cash, net of issuance costs, shares	799,764
Series E preferred stock issued for cash, net of issuance costs, value	1,000		18,202,000		18,203,000
Series E preferred stock dividends, shares
Series E preferred stock dividends, value			(3,352,000)		(3,352,000)
Stock issued for cash, net of issuance costs, Shares		3,983,360
Stock issued for cash, net of issuance costs, value		4,000	6,039,000		6,043,000
Common stock issued for cash, net of issuance cost, shares		9,681,757
Common stock issued for cash, net of issuance cost, value		10,000	13,182,000		13,192,000
Common stock issued under Employee Stock Purchase Plan, shares		497,453
Common stock issued under Employee Stock Purchase Plan, value			608,000		608,000
Common stock issued upon exercise of options,shares		312,893
Common stock issued upon exercise of options, value			298,000		298,000
Share-based compensation			6,702,000		6,702,000
Net loss				(50,358,000)	(50,358,000)
Ending Balance, Value at Apr. 30, 2015	$ 2,000	$ 193,000	$ 512,464,000	$ (453,624,000)	$ 59,035,000
Ending Balance, Shares at Apr. 30, 2015	1,574,764	193,346,627

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (50,358,000)	$ (35,362,000)	$ (29,780,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	6,702,000	6,207,000	3,435,000
Depreciation and amortization	1,041,000	986,000	1,087,000
Loss on early extinguishment of debt	0	0	1,696,000
Loss on disposal of property and equipment	2,000	4,000	8,000
Changes in operating assets and liabilities:
Trade and other receivables, net	(2,481,000)	330,000	691,000
Inventories	(1,824,000)	(1,191,000)	(728,000)
Prepaid expenses and other current assets, net	64,000	(710,000)	86,000
Other non-current assets	12,000	(94,000)	2,000
Accounts payable	3,278,000	(391,000)	(691,000)
Accrued clinical trial and related fees	(523,000)	3,503,000	(1,181,000)
Accrued payroll and related expenses	769,000	255,000	1,114,000
Deferred revenue	1,097,000	1,070,000	451,000
Customer deposits	5,603,000	(2,299,000)	3,194,000
Other accrued expenses and current liabilities	(52,000)	(464,000)	24,000
Deferred rent, net of current portion	651,000	(98,000)	(334,000)
Net cash used in operating activities	(36,019,000)	(28,254,000)	(20,926,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Property and equipment acquisitions	(9,047,000)	(755,000)	(853,000)
Decrease (Increase) in other assets	598,000	(1,767,000)	102,000
Net cash used in investing activities	(8,449,000)	(2,522,000)	(751,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock, net of issuance costs of $513,000, $1,504,000, and $1,232,000, respectively	19,235,000	53,920,000	39,522,000
Proceeds from issuance of Series E preferred stock, net of issuance costs of $1,002,000 and $1,458,000, respectively	18,203,000	17,917,000	0
Proceeds from issuance of notes payable, net of issuance costs of $251,000	0	0	14,749,000
Proceeds from issuance of common stock under Employee Stock Purchase Plan	608,000	545,000	534,000
Proceeds from exercise of stock options	298,000	944,000	96,000
Dividends paid on preferred stock	(3,352,000)	(232,000)	0
Principal payments on notes payable	0	0	(15,000,000)
Payment of final fee on notes payable	0	0	(975,000)
Principal payments on capital leases	(13,000)	(32,000)	(78,000)
Net cash provided by financing activities	34,979,000	73,062,000	38,848,000
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(9,489,000)	42,286,000	17,171,000
CASH AND CASH EQUIVALENTS, beginning of period	77,490,000	35,204,000	18,033,000
CASH AND CASH EQUIVALENTS, end of period	68,001,000	77,490,000	35,204,000
SUPPLEMENTAL INFORMATION:
Cash paid for interest	0	1,000	46,000
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Fair market value of warrants issued in connection with notes payable	0	0	470,000
Accounts payable and other liabilities for purchase of property and equipment	4,673,000	4,000	20,000
Lease incentives	$ 100,000	$ 0	$ 0

1. ORGANIZATION AND BUSINESS DESCRIPTION

12 Months Ended

Apr. 30, 2015

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 focused on developing novel investigational products that help utilize the body’s own immune system to fight cancer, also known as immunotherapy. Our lead immunotherapy candidate, bavituximab, is in Phase III development for the treatment of previously-treated non-small cell lung cancer (the “Phase III SUNRISE trial”) along with several investigator-sponsored trials evaluating other treatment combinations and additional oncology indications.

The Phase III SUNRISE trial (Stimulating ImmUne RespoNse thRough BavItuximab in a PhaSE III Lung Cancer Study) was initiated in December 2013 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 non-small cell lung cancer (“NSCLC”). We are also exploring the broader immunotherapeutic applications of bavituximab in the treatment of cancer in combination with chemotherapy and other immunotherapy agents by advancing existing investigator-sponsored trials and through the initiation of new Company-sponsored trials.

In addition to our clinical research and development efforts, we operate a wholly-owned biomanufacturing subsidiary, Avid Bioservices, Inc., a Contract Manufacturing Organization that provides fully integrated current Good Manufacturing Practices services from cell line development to commercial biomanufacturing for its third-party customers while also supporting the clinical and potential commercial drug supply of bavituximab. In December 2014, we announced expansion plans that could more than double Avid’s current manufacturing capacity to support the potential commercial manufacturing of bavituximab while also providing sufficient additional capacity to meet the anticipated growth of Avid’s business. The new manufacturing facility is expected to be operational in the near term.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Apr. 30, 2015

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.

Going Concern - Our consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability of the recorded assets or the classification of liabilities that may be necessary should it be determined that we are unable to continue as a going concern.

At April 30, 2015, we had $68,001,000 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. Therefore, unless and until we are able to generate sufficient revenue from Avid’s contract manufacturing services and/or from the sale and/or licensing of our product candidates under development, we expect such losses to continue in the foreseeable future.

Our ability to continue to fund 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, (i) raising additional capital in the equity markets, (ii) licensing or partnering our product candidates in development, or (iii) generating additional revenue from Avid.

Historically, we have funded a significant portion of our operations through the issuance of equity. During fiscal year 2015, we raised $19,748,000 in aggregate gross proceeds from the sale of shares of our common stock and raised an additional $19,205,000 in aggregate gross proceeds from the sale of our 10.5% Series E Convertible Preferred Stock (the “Series E Preferred Stock”) (Note 6). Subsequent to April 30, 2015 and through July 14, 2015, we raised an additional $8,896,000 in aggregate gross proceeds from the sale of shares of our common stock under an At Market Issuance Sales Agreement (Note 13). As of July 14, 2015, $151,651,000 remained available to us under our two effective shelf registration statements, which allows us from time to time to offer and sell shares of our common stock or preferred stock, in one or more offerings, either individually or in combination.

Although we believe we can raise sufficient capital to meet our obligations through fiscal year 2016, our ability to raise additional capital in the equity markets to fund our obligations in future periods 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 one or more clinical trials. If we are unable to either (i) raise sufficient capital in the equity markets, (ii) license or partner our products in development, or (iii) generate additional revenue from Avid, or any combination thereof, we may need to delay, scale back, or eliminate some or all our research and development efforts, delay the commercial launch of bavituximab, if approved, and/or restructure our operations. In addition, even if we are able to raise additional capital, it may not be at a price or on terms that are favorable to us.

Therefore, these uncertainties surrounding our ability to raise sufficient capital to meet our obligations through fiscal year 2016 have raised substantial doubt regarding our ability to continue as a going concern, and as a result, our independent registered public accounting firm included an explanatory paragraph in its report accompanying our audited consolidated financial statements for the year ended April 30, 2015 with respect to this uncertainty.

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:

	2015		2014
Trade receivables⁽¹⁾	$	3,423,000	$	1,219,000
Other receivables, net		390,000		113,000
Trade and other receivables, net	$	3,813,000	$	1,332,000

______________

⁽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, 2015 and 2014, we determined an allowance for doubtful accounts of $5,000 and $13,000, respectively, was necessary with respect to our other receivables, and no allowance was necessary with respect to our trade 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, 2015 and 2014 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, 2015 and 2014.

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,:

	2015		2014
Raw materials	$	3,821,000	$	2,370,000
Work-in-process		3,533,000		3,160,000
Total inventories	$	7,354,000	$	5,530,000

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. Construction-in-progress, which represents direct costs related to the construction of a manufacturing facility, is not depreciated until the asset is completed and placed into service. No interest was incurred or capitalized as construction-in-progress as of April 30, 2015.

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 customers and generally do not require collateral, but we can terminate any contract if a material default occurs. Approximately 97% and 99% of the trade receivables balance at April 30, 2015 and 2014 (Note 2), respectively, represents 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, 2015 and 2014, 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, trade and other receivables, 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, 2015 and 2014, 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.

Deferred Rent - Rent expense is recorded on a straight-line basis over the initial term of our facility operating lease agreements and the difference between rent expense and the amounts paid is recorded as a deferred rent liability. Incentives granted under our facility operating leases, including tenant improvements and landlord-funded lease incentives, are recorded as a deferred rent liability, which is amortized as a reduction to rent expense over the term of the operating lease (Note 4).

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; and

	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 our 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 us.

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 amounts received prior to satisfying these revenue recognition criteria are 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, 2015.

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, such as a Black-Scholes option valuation model, and is recognized as expense on a straight-line basis over the requisite service periods. The fair value of modifications to share-based awards, if any, is generally estimated using a Black-Scholes option valuation model, unless a lattice model is required. 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. In addition, as of April 30, 2015, there were no outstanding share-based awards with market or performance conditions.

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 (Note 7).

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 (Note 9).

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 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 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 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 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, 2015.

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,:

	2015		2014		2013
Stock options		3,833,193		4,576,112		3,505,777
Employee stock purchase plan		46,992		72,896		307,501
Warrants		–		3,802		–
Total		3,880,185		4,652,810		3,813,278

The calculation of weighted average diluted shares outstanding also excludes weighted average outstanding stock options and warrants to purchase 8,744,285, 5,424,803, and 5,860,305 shares of common stock for fiscal years ended April 30, 2015, 2014, and 2013, 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 9,879,531 and 1,253,452, assuming the issuance of common stock upon conversion of outstanding Series E Preferred Stock for fiscal years 2015 and 2014, respectively, 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 respective periods, resulting in an anti-dilutive effect.

Subsequent to April 30, 2015 and through July 14, 2015, we granted an aggregate of 3,299,903 stock options under a broad based annual grant for fiscal year 2016 (Note 13) and issued an aggregate of 6,534,400 shares of our common 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, 2015.

Adoption of Recent Accounting Pronouncements

Effective May 1, 2014, we adopted Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“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. The adoption of ASU No. 2013-11 did not have a material impact on our consolidated financial statements.

Pending Adoption of Recent Accounting Pronouncements

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. On April 1, 2015, the FASB voted to propose a one-year deferral to the effective date, but to permit entities to adopt one year earlier if they choose (i.e., the original effective date). The proposal will be subject to the FASB’s due process requirement, which includes a period for public comments. 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, including what transition method will be elected.

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU No. 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. Substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued (or available to be issued). ASU No. 2014-15 provides guidance to an organization’s management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations in the financial statement footnotes. ASU No. 2014-15 is effective for annual reporting periods ending after December 15, 2016, which will be our fiscal year ending April 30, 2017, and to annual and interim periods thereafter. Early adoption is permitted. We have not yet determined the effect that the adoption of this guidance will have on the disclosures included in our consolidated financial statements.

In November 2014, the FASB issued ASU No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or to Equity. ASU No. 2014-16 clarifies how current guidance should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. In addition, ASU No. 2014-16 clarifies that in evaluating the nature of a host contract, an entity should assess the substance of the relevant terms and features (that is, the relative strength of the debt-like or equity-like terms and features given the facts and circumstances) when considering how to weight those terms and features. The effects of initially adopting ASU No. 2014-16 should be applied on a modified retrospective basis to existing hybrid financial instruments issued in a form of a share as of the beginning of the fiscal year for which the amendments are effective. Retrospective application is permitted to all relevant prior periods. ASU No. 2014-16 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, which will be our fiscal year 2017 (or May 1, 2016). Early adoption is permitted. We are currently in the process of evaluating the impact of adoption of ASU No. 2014-16 on our consolidated financial statements and related disclosures.

In June 2015, FASB issued ASU No. 2015-10, Technical Corrections and Updates. ASU No. 2015-10 is intended to correct differences between original guidance and the Codification, clarify the guidance, correct references and make minor improvements affecting a variety of topics. ASU No. 2015-10 covers a wide range of topics in the Codification and is generally categorized as follows: Amendments Related to Differences between Original Guidance and the Codification; Guidance Clarification and Reference Corrections; Simplification; and, Minor Improvements. The amendments are effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015, which will be our fiscal year 2017 (or May 1, 2016). Early adoption is permitted. We are currently in the process of evaluating the impact of adoption of ASU No. 2015-10 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, 2015

Debt and Capital Lease Obligations [Abstract]

3. NOTE PAYABLE AND CAPITAL LEASE OBLIGATIONS

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, 2015, 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.

Capital Lease Obligations

We had financed certain equipment under capital lease agreements, which bore interest at rates ranging from 3.71% to 5.36% per annum, and which, were paid in full as of April 30, 2015. Equipment purchased under capital leases is included in property in the accompanying consolidated financial statements at April 30, 2014 are as follows:

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

4. COMMITMENTS AND CONTINGENCIES

12 Months Ended

Apr. 30, 2015

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 currently lease an aggregate of approximately 101,000 square feet of office, research and manufacturing space in four adjacent buildings under three separate lease agreements.

In December 1998, we entered into our first lease agreement (the “First Lease”) to lease two buildings located at our headquarters in Tustin, California. The First 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 an amendment with the landlord 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.

During fiscal year 2011, we entered into a second lease agreement (the “Second Lease”) to lease additional office and research space in a building adjacent to our two buildings leased under the First Lease. The Second Lease expires on December 31, 2017 and includes a 5-year option to extend the lease to December 31, 2022. The Second Lease includes nominal scheduled increases every twelve months. In addition, under the terms of the Second Lease, 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 Second Lease are recorded as leasehold improvements and are being amortized over the shorter of the estimated useful life of the improvements or the remaining life of the lease.

During fiscal year 2015, we entered into a third lease agreement (the “Third Lease”), to lease approximately 40,000 square feet of vacant warehouse space in a nearby adjacent building to expand our current manufacturing capacity. Our monthly base rent under the lease agreement is approximately $38,000 and includes scheduled annual rent increases of 3.0%. The lease term is for six years commencing August 1, 2015 and includes an option to extend the lease term in two 5-year periods to extend the lease to July 31, 2031. In addition, the Third Lease provides for 12.5 months of free rent, lessor improvements of $250,000 and a tenant improvement allowance of $365,000. The lessor improvements and tenant improvement allowance were classified as deferred rent and are being amortized on a straight-line basis over the term of the lease as a reduction to rent expense. In addition, these improvements associated with the lease agreement will be recorded as an addition to leasehold improvements upon completion of the facility build-out and amortized over the shorter of the estimated useful life of the improvements or the remaining life of the lease.

Under each of the aforementioned facility operating leases, we record rent expense on a straight-line basis over the initial term of the lease. The difference between rent expense and the amounts paid under the operating leases is recorded as a deferred rent liability in the accompanying consolidated financial statements. Annual rent expense under the aforementioned facility operating lease agreements totaled $1,197,000, $938,000, and $938,000 for the fiscal years ended April 30, 2015, 2014, and 2013, respectively.

At April 30, 2015, future minimum lease payments under all non-cancelable operating leases are as follows:

Year ending April 30,:		Minimum Lease Payments
	2016	$	1,359,000
	2017		1,530,000
	2018		1,206,000
	2019		490,000
	2020		504,000
	Thereafter		650,000
		$	5,739,000

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. Unless otherwise disclosed, we are unable to estimate the possible loss or range of loss for the legal proceedings described below. While it is not possible to accurately predict or determine the eventual outcome of these items, an adverse determination in one or more of these items currently pending could have a material adverse effect on our consolidated results of operations, financial position or cash flows.

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 the 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 Defendants’ motion to dismiss. Lead plaintiff’s opening brief with respect to the appeal was filed on December 15, 2014 and the Defendants’ answering brief was filed on January 30, 2015. Lead plaintiff filed a reply brief on February 27, 2015. We believe that the class action lawsuit is without merit and intend to vigorously defend the action.

Derivative Litigation

On May 9, 2013, an alleged shareholder filed, purportedly on behalf of us, 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”). The plaintiff is seeking, for our benefit, unspecified monetary damages and other relief. 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/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 our directors and executives breached their respective fiduciary duties in connection with certain purportedly improper compensation decisions made by our 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 our 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 our 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 our 2013 annual meeting of stockholders. The plaintiffs are seeking recession of a portion of the stock option grant to Mr. King on May 4, 2012 and the stock options granted to the defendants on December 27, 2012, as well as disgorgement of any excessive compensation paid to our non-employee directors during the three fiscal years prior to the filing of the complaint and other monetary relief for our benefit. The defendants filed their answer to the complaint on February 5, 2014. We believe that the derivative/class action complaint are without merit and intend to vigorously defend the action.

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 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, 2014, and the hearing on the motion was held on July 28, 2014. On July 30, 2014, the court issued its order holding that the limitation of liability clause did not apply to our claims for active negligence, negligent misrepresentation and constructive fraud, but did apply to our causes of action for breach of contract, passive negligence and negligence per se. On March 27, 2015, 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 causes of action for negligence, negligence per se, negligent misrepresentation, and constructive fraud are barred by the economic loss doctrine, as well as that the causes of action for negligent misrepresentation and constructive fraud cannot be established as a matter of law. Our opposition to CSM’s motion was filed with the court on April 13, 2015 and CSM’s reply to our motion was filed on April 20, 2015. On June 22, 2015, the court issued its order granting CSM’s Motion for Partial Summary Judgment. The trial date for this matter is set for October 20, 2015.

- Definition

The entire disclosure for commitments and contingencies.

+ References+ Details

5. LICENSING AGREEMENTS

12 Months Ended

Apr. 30, 2015

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 2015 and 2013.

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 trial 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)

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 $461,000 USD based on the exchange rate at April 30, 2015).

We do not expect to incur any milestone related expenses regarding our bavituximab program during fiscal year 2016. 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 PS-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 PS-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 2015 or 2014 covering PGN650. In addition, we do not expect to incur any milestone related expenses regarding our PGN650 program during fiscal year 2016.

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, 2015. 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, were 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 $37,000, $107,000 and $350,000 during fiscal years 2015, 2014 and 2013, respectively, 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, 2015

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 our common stock (or in certain circumstances, voting securities of the acquiring person or group) with a value of twice the Rights’ exercise price upon payment of the exercise price of the Rights.

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, 2015, 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 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.

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, 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. 333-180028), which was declared effective by the SEC on April 12, 2012 (“April 2012 Shelf”), for aggregate gross proceeds of up to $75,000,000. 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. During fiscal year 2015, we sold 3,983,360 shares of common stock at market prices under the December 2012 AMI Agreement for aggregate gross proceeds of $6,204,000 before deducting commissions and other issuance costs of $161,000. As of April 30, 2015, we had raised the full amount of gross proceeds available to us under the December 2012 AMI Agreement.

June 2014 AMI Agreement – On June 13, 2014, we entered into an 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 in registered transactions from our April 2012 Shelf. On April 13, 2015, we entered into an amendment (“Amendment”) to the June 2014 AMI Agreement to substitute registration statements from which shares of our common stock may be offered and sold under the June 2014 AMI Agreement. The Amendment replaced the April 2012 Shelf, which expired on April 12, 2015, with our shelf registration statement on Form S-3 (File No. 333-201245), which was declared effective by the SEC on January 15, 2015. During fiscal year 2015, we sold 9,681,757 shares of common stock at market prices under the June 2014 AMI Agreement, as amended, for aggregate gross proceeds of $13,544,000 before deducting commissions and other issuance costs of $352,000. As of April 30, 2015, aggregate gross proceeds of up to $11,456,000 remained available under the June 2014 AMI Agreement, as amended.

Sale of Preferred Stock

February 2014 Offering – 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 shelf registration statement on Form S-3 (File No. 333-193113) which was declared effective by the SEC on January 16, 2014 (“January 2014 Shelf”).

June 2014 Series E 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, in registered transactions from our January 2014 Shelf. During fiscal year 2015, we sold 799,764 shares of our Series E Preferred Stock at market prices under the Series E AMI Agreement for aggregate gross proceeds of $19,205,000 before deducting commissions and other issuance costs of $1,002,000. As of April 30, 2015, aggregate gross proceeds of up to $10,795,000 remained available under the Series E AMI Agreement.

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 designated 2,000,000 shares of Series E Preferred Stock out of our 5,000,000 shares of authorized but unissued shares of preferred stock. Certain terms 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^st day 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.

Series E Preferred Stock Dividend

The following table summarizes the Series E Preferred Stock dividend activity from inception of the Series E Preferred Stock offering though April 30, 2015:

Declaration

Date

Dividend

Per Share

Annualized

Percentage

Rate

Liquidation

Preference

Accrual

Period

Record

Date

Payment

Date

3/11/2014

$0.29890⁽¹⁾

10.50%

$25.00

2/19/2014 – 3/31/2014

3/21/2014

4/1/2014

6/10/2014

$0.65625

10.50%

$25.00

4/1/2014 – 6/30/2014

6/20/2014

7/1/2014

9/8/2014

$0.65625

10.50%

$25.00

7/1/2014 – 9/30/2014

9/19/2014

10/1/2014

12/9/2014

$0.65625

10.50%

$25.00

10/1/2014 – 12/31/2014

12/19/2014

1/2/2015

3/10/2015

$0.65625

10.50%

$25.00

1/1/2015 – 3/31/2015

3/20/2015

4/1/2015

______________

⁽¹⁾

Dividend per share was pro-rated for the initial accrual period starting February 19, 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, 2015, 193,346,627 shares of our common stock were issued and outstanding. In addition, our common stock outstanding as of April 30, 2015 excluded the following shares of common stock reserved for future issuance:

24,880,481 shares of common stock reserved for issuance under outstanding option grants and available for issuance under our stock incentive plans;

2,443,056 shares of common stock reserved for and available for issuance under our Employee Stock Purchase Plan;

273,280 shares of common stock issuable upon exercise of outstanding warrants; and

45,668,156 shares of common stock 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 13,123,033 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.

- 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.

+ References

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Reference 8: http://www.xbrl.org/2003/role/presentationRef

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Reference 10: http://www.xbrl.org/2003/role/presentationRef

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Reference 11: http://www.xbrl.org/2003/role/presentationRef

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Reference 12: http://www.xbrl.org/2003/role/presentationRef

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+ Details

7. EQUITY COMPENSATION PLANS

12 Months Ended

Apr. 30, 2015

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, 2015, we had an aggregate of 24,880,481 shares of common stock reserved for issuance under the Stock Plans. Of those shares, 20,708,672 shares were subject to outstanding options and 4,171,809 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, 2015, 2014 and 2013, were as follows:

	Year Ended April 30,
	2015		2014		2013
Risk-free interest rate		1.95%		1.32%		0.96%
Expected life (in years)		5.74		5.84		5.85
Expected volatility		111.78%		113.92%		95.87%
Expected dividend yield		–		–		–

The following summarizes our stock option transaction activity for fiscal year ended April 30, 2015:

Stock Options	Shares			Weighted Average Exercisable Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ⁽¹⁾
Outstanding, May 1, 2014		17,165,333		$	1.58
Granted		4,550,198		$	1.72
Exercised		(312,893	)	$	0.96
Canceled or expired		(693,966	)	$	3.91
Outstanding, April 30, 2015		20,708,672		$	1.54		7.29	$	3,577,000

Exercisable and expected to vest		20,626,944		$	1.54		7.29	$	3,577,000
Exercisable, April 30, 2015		16,954,935		$	1.51		6.96	$	3,533,000

______________

⁽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, 2015, which was $1.31 per share.

The weighted-average grant date fair value of options granted to employees during the fiscal years ended April 30, 2015, 2014 and 2013 was $1.43, $1.19 and $0.69 per share, respectively.

The aggregate intrinsic value of stock options exercised during the fiscal years ended April 30, 2015, 2014 and 2013 was $192,000, $908,000 and $106,000, respectively. Cash received from stock options exercised during fiscal years ended April 30, 2015, 2014 and 2013, totaled $298,000, $944,000 and $96,000, respectively, net of issuance costs of $3,000, $4,000 and $2,000, respectively.

We issue shares of common stock that are reserved for issuance under the Stock Plans upon the exercise of stock options, and we do not expect to repurchase shares of common stock from any source to satisfy our obligations under our compensation plans.

As of April 30, 2015, the total estimated unrecognized compensation cost related to non-vested employee stock options was $3,671,000. This cost is expected to be recognized over a weighted average vesting period of 1.28 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.

During fiscal year ended April 30, 2014, the weighted-average grant date fair value of restricted stock awards granted and vested 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, 2015 and 2013. As of April 30, 2015, 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 sell shares to participants at a price equal to the lesser of 85% of the fair market value of our common stock at the (i) beginning of a six-month offering period, or (ii) end of the six-month offering period. The ESPP provides for two six-month offering periods each fiscal year; the first offering period begins on the first trading day on or after each November 1; the second offering period begins 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 2,443,056 shares remained available to purchase at April 30, 2015, 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, 2015, 2014 and 2013, 497,453, 498,050 and 998,556 shares of common stock were purchased, respectively, under the ESPP at a weighted average purchase price per share of $1.22, $1.09 and $0.53, 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, 2015, 2014 and 2013 was $0.56, $0.55 and $0.40, respectively, based on the following Black-Scholes option valuation model inputs:

	Year Ended April 30,
	2015		2014		2013
Risk-free interest rate		0.06%		0.08%		0.15%
Expected life (in years)		0.50		0.50		0.50
Expected volatility		63.54%		93.39%		167.36%
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, 2015, 2014 and 2013 was comprised of the following:

	2015		2014		2013
Cost of contract manufacturing	$	59,000	$	68,000	$	89,000
Research and development		2,904,000		2,804,000		1,646,000
Selling, general and administrative		3,739,000		3,335,000		1,700,000
Total share-based compensation expense	$	6,702,000	$	6,207,000	$	3,435,000

Share-based compensation from:
Stock options	$	6,465,000	$	5,803,000	$	3,039,000
Restricted stock awards		–		139,000		–
ESPP		237,000		265,000		396,000
	$	6,702,000	$	6,207,000	$	3,435,000

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, 2015, 2014 and 2013 associated with stock options and awards granted to non-employees amounted to $289,000, $391,000 and $320,000, respectively.

As of April 30, 2015, the total estimated unrecognized compensation cost related to non-vested stock options granted to non-employees was $146,000 based on an April 30, 2015 measurement date. This cost is expected to be recognized over a weighted average vesting period of 0.98 years.

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.

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9. INCOME TAXES

12 Months Ended

Apr. 30, 2015

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, 2015 and 2014. 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, 2015, 2014, and 2013, and we did not accrue for interest or penalties as of April 30, 2015 and 2014.

At April 30, 2015, we had total deferred tax assets of $146,524,000. 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. Additionally, the future utilization of our net operating loss carry forwards to offset future taxable income may be subject to an annual limitation, pursuant to Internal Revenue Code Section 382, as a result of ownership changes that may have occurred previously or that could occur in the future. A Section 382 analysis was completed as of the fiscal year ended April 30, 2015 and it was determined that no change in ownership had occurred.

At April 30, 2015, we had federal net operating loss carry forwards of approximately $336,914,000. The net operating loss carry forwards expire in fiscal years 2019 through 2035. We also have state net operating loss carry forwards of approximately $246,617,000 at April 30, 2015, which begin to expire in fiscal year 2016. In addition, we have approximately $5,956,000 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,:

	2015			2014			2013
Provision for federal income taxes at statutory rate	$	(17,122,000	)	$	(12,023,000	)	$	(10,125,000	)
State income taxes		(4,450,000	)		(3,124,000	)		(2,631,000	)
Expiration and adjustments of deferred tax assets		1,790,000			2,751,000			(95,630,000	)
Change in valuation allowance		19,532,000			12,153,000			108,310,000
Other, net		250,000			243,000			76,000
Income tax (expense) benefit	$	–		$	–		$	–

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, 2015 and 2014 are as follows:

	2015			2014
Share-based compensation	$	7,119,000		$	4,716,000
Deferred revenue		2,840,000			2,370,000
Depreciation and amortization		530,000			664,000
Accrued liabilities		2,235,000			1,650,000
Net operating losses		133,800,000			117,592,000

Total deferred tax assets		146,524,000			126,992,000
Less valuation allowance		(146,524,000	)		(126,992,000	)

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

Apr. 30, 2015

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 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 eligible compensation for all Plan contributions, subject to certain IRS limitations. Effective January 2015, we voluntarily agreed to match between 50% and 100% of employee contributions as defined in the Plan amendment (based on years of service with us as summarized below) up to the first 6% of a participant’s annual eligible compensation for all Plan contributions, subject to certain IRS limitations.

Years of Service		Employer Match
1-3		50%
4-6		65%
7-9		80%
10 or more		100%

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 $454,000, $300,000, and $284,000 for the fiscal years ended April 30, 2015, 2014, and 2013, respectively.

11. SEGMENT REPORTING

12 Months Ended

Apr. 30, 2015

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, 2015, 2014 and 2013 is summarized as follows:

	2015			2014			2013
Contract manufacturing services revenue	$	26,744,000		$	22,294,000		$	21,333,000
Cost of contract manufacturing services		15,593,000			13,110,000			12,595,000
Gross profit	$	11,151,000		$	9,184,000		$	8,738,000

Revenue from products in research and development	$	37,000		$	107,000		$	350,000
Research and development expense		(42,996,000	)		(27,723,000	)		(24,306,000	)
Selling, general and administrative expense		(18,691,000	)		(17,274,000	)		(13,134,000	)
Other income (expense), net		141,000			344,000			268,000
Loss on early extinguishment of debt		–			–			(1,696,000	)
Net loss	$	(50,358,000	)	$	(35,362,000	)	$	(29,780,000	)

Revenue generated from our contract manufacturing services segment during fiscal years ended April 30, 2015, 2014 and 2013 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:

	2015		2014		2013

Halozyme Therapeutics, Inc.		79%		91%		81%
Customer A		12		–		–
Customer B		–		1		17
Other customers		9		8		2
Total		100%		100%		100%

In addition, we attribute contract manufacturing services revenue to the individual countries where the customer is headquartered. Contract manufacturing services revenue from customers are summarized by geographic location in the following table:

	2015		2014		2013
U.S.	$	26,715,000	$	22,225,000	$	21,176,000
Non-U.S.		29,000		69,000		157,000
Total	$	26,744,000	$	22,294,000	$	21,333,000

Revenue generated from our products in our research and development segment during fiscal years ended April 30, 2015, 2014 and 2013 were directly related to license revenue recognized under licensing agreements with an unrelated entity (Note 5).

Our long-lived assets are located in the U.S. and consist of leasehold improvements, laboratory equipment, furniture and fixtures, office equipment and software, construction-in-progress and are net of accumulated depreciation. Long-lived assets by segment as of April 30, 2015 and 2014 consist of the following:

	2015		2014
Long-lived Assets, net:
Contract manufacturing services	$	12,800,000	$	1,956,000
Products in research and development		2,324,000		491,000
Total	$	15,124,000	$	2,447,000

- 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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+ Details

12. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Apr. 30, 2015

Quarterly Financial Information Disclosure [Abstract]

12. 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,
	2015			2015			2014			2014			2014			2014			2013			2013
Net revenues	$	9,308,000		$	5,677,000		$	6,300,000		$	5,496,000		$	6,474,000		$	3,885,000		$	7,354,000		$	4,688,000
Gross profit (a)	$	4,550,000		$	2,564,000		$	2,124,000		$	1,913,000		$	2,645,000		$	1,469,000		$	3,159,000		$	1,911,000
Loss from operations	$	(12,169,000	)	$	(13,022,000	)	$	(12,137,000	)	$	(13,171,000	)	$	(10,529,000	)	$	(9,743,000	)	$	(7,814,000	)	$	(7,620,000	)
Net loss	$	(12,135,000	)	$	(12,994,000	)	$	(12,100,000	)	$	(13,129,000	)	$	(10,248,000	)	$	(9,724,000	)	$	(7,790,000	)	$	(7,600,000	)
Series E preferred stock accumulated dividends (b)	$	(1,378,000	)	$	(1,033,000	)	$	(1,031,000	)	$	(1,028,000	)	$	(401,000	)	$	–		$	–		$	–
Net loss attributable to common stockholders	$	(13,513,000	)	$	(14,027,000	)	$	(13,131,000	)	$	(14,157,000	)	$	(10,649,000	)	$	(9,724,000	)	$	(7,790,000	)	$	(7,600,000	)
Basic and diluted loss per common share	$	(0.07	)	$	(0.08	)	$	(0.07	)	$	(0.08	)	$	(0.06	)	$	(0.06	)	$	(0.05	)		$ (0. 05)

____________

	(a)	Gross profit represents contract manufacturing revenue less cost of contract manufacturing.
	(b)	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).

- 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, 2015

Subsequent Events [Abstract]

13. SUBSEQUENT EVENTS

Sale of Common Stock

Subsequent to April 30, 2015 and through July 14, 2015, we sold 6,534,400 shares of common stock at market prices under the July 2014 AMI Agreement (Note 6) for aggregate gross proceeds of $8,896,000. As of July 14, 2015, aggregate gross proceeds of $2,560,000 remained available under the July 2014 AMI Agreement.

Broad Based Annual Grant of Stock Options

On May 11, 2015, our Compensation Committee of the Board of Directors approved a broad based annual grant of stock options for fiscal year 2016 to substantially all of our employees, our three non-employee directors and one consultant to purchase an aggregate of 3,299,903 shares of common stock at an exercise price of $1.31. 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 5, 2015, 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, 2015 through June 30, 2015. The cash dividend of $1,033,000 was paid on July 1, 2015 to holders of the Series E Preferred Stock of record on June 19, 2015.

SCHEDULE II - VALUATION OF QUALIFYING ACCOUNTS

12 Months Ended

Apr. 30, 2015

Valuation and Qualifying Accounts [Abstract]

SCHEDULE II - VALUATION OF QUALIFYING ACCOUNTS

	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, 2013	$	111,000	$	–	$	(3,000	)	$	108,000
Year ended April 30, 2014	$	108,000	$	–	$	(3,000	)	$	105,000
Year ended April 30, 2015	$	105,000	$	–	$	(8,000	)	$	97,000

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Apr. 30, 2015

Accounting Policies [Abstract]

Basis of Presentation

Use of Estimates

Going Concern

Cash and Cash Equivalents

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

	2015		2014
Trade receivables⁽¹⁾	$	3,423,000	$	1,219,000
Other receivables, net		390,000		113,000
Trade and other receivables, net	$	3,813,000	$	1,332,000

______________

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

Allowance for Doubtful Accounts

Inventories

	2015		2014
Raw materials	$	3,821,000	$	2,370,000
Work-in-process		3,533,000		3,160,000
Total inventories	$	7,354,000	$	5,530,000

Property and Equipment, net

Concentrations of Credit Risk and Customer Base

Comprehensive Loss

Impairment

Fair Value of Financial Instruments

Fair Value Measurements

•

Level 1 – Quoted prices in active markets for identical assets or liabilities.

•

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

Deferred Rent

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; and

	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 our 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 amounts received prior to satisfying these revenue recognition criteria are recorded as deferred revenue in the accompanying consolidated financial statements.

Research and Development Expenses

Share-based Compensation

Income Taxes

Basic and Dilutive Net Loss Per Common Share

	2015		2014		2013
Stock options		3,833,193		4,576,112		3,505,777
Employee stock purchase plan		46,992		72,896		307,501
Warrants		–		3,802		–
Total		3,880,185		4,652,810		3,813,278

Adoption of Recent Accounting Pronouncements

Adoption of Recent Accounting Pronouncements

Pending Adoption of Recent Accounting Pronouncements

Pending Adoption of Recent Accounting Pronouncements

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Apr. 30, 2015

Accounting Policies [Abstract]

Trade and Other Receivables

	2015		2014
Trade receivables⁽¹⁾	$	3,423,000	$	1,219,000
Other receivables, net		390,000		113,000
Trade and other receivables, net	$	3,813,000	$	1,332,000

Inventories

	2015		2014
Raw materials	$	3,821,000	$	2,370,000
Work-in-process		3,533,000		3,160,000
Total inventories	$	7,354,000	$	5,530,000

Antidilutive Shares

	2015		2014		2013
Stock options		3,833,193		4,576,112		3,505,777
Employee stock purchase plan		46,992		72,896		307,501
Warrants		–		3,802		–
Total		3,880,185		4,652,810		3,813,278

6. STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Apr. 30, 2015

Equity [Abstract]

Preferred Stock Dividend

Declaration

Date

Dividend

Per Share

Annualized

Percentage

Rate

Liquidation

Preference

Accrual

Period

Record

Date

Payment

Date

3/11/2014

$0.29890⁽¹⁾

10.50%

$25.00

2/19/2014 – 3/31/2014

3/21/2014

4/1/2014

6/10/2014

$0.65625

10.50%

$25.00

4/1/2014 – 6/30/2014

6/20/2014

7/1/2014

9/8/2014

$0.65625

10.50%

$25.00

7/1/2014 – 9/30/2014

9/19/2014

10/1/2014

12/9/2014

$0.65625

10.50%

$25.00

10/1/2014 – 12/31/2014

12/19/2014

1/2/2015

3/10/2015

$0.65625

10.50%

$25.00

1/1/2015 – 3/31/2015

3/20/2015

4/1/2015

7. EQUITY COMPENSATION PLANS (Tables)

12 Months Ended

Apr. 30, 2015

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, 2014		17,165,333		$	1.58
Granted		4,550,198		$	1.72
Exercised		(312,893	)	$	0.96
Canceled or expired		(693,966	)	$	3.91
Outstanding, April 30, 2015		20,708,672		$	1.54		7.29	$	3,577,000

Exercisable and expected to vest		20,626,944		$	1.54		7.29	$	3,577,000
Exercisable, April 30, 2015		16,954,935		$	1.51		6.96	$	3,533,000

Share-based compensation expense

	2015		2014		2013
Cost of contract manufacturing	$	59,000	$	68,000	$	89,000
Research and development		2,904,000		2,804,000		1,646,000
Selling, general and administrative		3,739,000		3,335,000		1,700,000
Total share-based compensation expense	$	6,702,000	$	6,207,000	$	3,435,000

Share-based compensation from:
Stock options	$	6,465,000	$	5,803,000	$	3,039,000
Restricted stock awards		–		139,000		–
ESPP		237,000		265,000		396,000
	$	6,702,000	$	6,207,000	$	3,435,000

Stock Options

Fair value valuation assumptions

	Year Ended April 30,
	2015		2014		2013
Risk-free interest rate		1.95%		1.32%		0.96%
Expected life (in years)		5.74		5.84		5.85
Expected volatility		111.78%		113.92%		95.87%
Expected dividend yield		–		–		–

Employee Stock Purchase Plan

	Year Ended April 30,
	2015		2014		2013
Risk-free interest rate		0.06%		0.08%		0.15%
Expected life (in years)		0.50		0.50		0.50
Expected volatility		63.54%		93.39%		167.36%
Expected dividend yield		–		–		–

9. INCOME TAXES (Tables)

12 Months Ended

Apr. 30, 2015

Income Tax Disclosure [Abstract]

Provision for income taxes

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

	2015			2014			2013
Provision for federal income taxes at statutory rate	$	(17,122,000	)	$	(12,023,000	)	$	(10,125,000	)
State income taxes		(4,450,000	)		(3,124,000	)		(2,631,000	)
Expiration and adjustments of deferred tax assets		1,790,000			2,751,000			(95,630,000	)
Change in valuation allowance		19,532,000			12,153,000			108,310,000
Other, net		250,000			243,000			76,000
Income tax (expense) benefit	$	–		$	–		$	–

Deferred income taxes

	2015			2014
Share-based compensation	$	7,119,000		$	4,716,000
Deferred revenue		2,840,000			2,370,000
Depreciation and amortization		530,000			664,000
Accrued liabilities		2,235,000			1,650,000
Net operating losses		133,800,000			117,592,000

Total deferred tax assets		146,524,000			126,992,000
Less valuation allowance		(146,524,000	)		(126,992,000	)

Net deferred tax assets	$	–		$	–

11. SEGMENT REPORTING (Tables)

12 Months Ended

Apr. 30, 2015

Segment Reporting [Abstract]

Segment information

	2015			2014			2013
Contract manufacturing services revenue	$	26,744,000		$	22,294,000		$	21,333,000
Cost of contract manufacturing services		15,593,000			13,110,000			12,595,000
Gross profit	$	11,151,000		$	9,184,000		$	8,738,000

Revenue from products in research and development	$	37,000		$	107,000		$	350,000
Research and development expense		(42,996,000	)		(27,723,000	)		(24,306,000	)
Selling, general and administrative expense		(18,691,000	)		(17,274,000	)		(13,134,000	)
Other income (expense), net		141,000			344,000			268,000
Loss on early extinguishment of debt		–			–			(1,696,000	)
Net loss	$	(50,358,000	)	$	(35,362,000	)	$	(29,780,000	)

Customer Revenue

	2015		2014		2013

Halozyme Therapeutics, Inc.		79%		91%		81%
Customer A		12		–		–
Customer B		–		1		17
Other customers		9		8		2
Total		100%		100%		100%

Customer revenue by geographic location

	2015		2014		2013
U.S.	$	26,715,000	$	22,225,000	$	21,176,000
Non-U.S.		29,000		69,000		157,000
Total	$	26,744,000	$	22,294,000	$	21,333,000

Long-lived assets

	2015		2014
Long-lived Assets, net:
Contract manufacturing services	$	12,800,000	$	1,956,000
Products in research and development		2,324,000		491,000
Total	$	15,124,000	$	2,447,000

- 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 (UNAUDITED) (Tables)

12 Months Ended

Apr. 30, 2015

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,
	2015			2015			2014			2014			2014			2014			2013			2013
Net revenues	$	9,308,000		$	5,677,000		$	6,300,000		$	5,496,000		$	6,474,000		$	3,885,000		$	7,354,000		$	4,688,000
Gross profit (a)	$	4,550,000		$	2,564,000		$	2,124,000		$	1,913,000		$	2,645,000		$	1,469,000		$	3,159,000		$	1,911,000
Loss from operations	$	(12,169,000	)	$	(13,022,000	)	$	(12,137,000	)	$	(13,171,000	)	$	(10,529,000	)	$	(9,743,000	)	$	(7,814,000	)	$	(7,620,000	)
Net loss	$	(12,135,000	)	$	(12,994,000	)	$	(12,100,000	)	$	(13,129,000	)	$	(10,248,000	)	$	(9,724,000	)	$	(7,790,000	)	$	(7,600,000	)
Series E preferred stock accumulated dividends (b)	$	(1,378,000	)	$	(1,033,000	)	$	(1,031,000	)	$	(1,028,000	)	$	(401,000	)	$	–		$	–		$	–
Net loss attributable to common stockholders	$	(13,513,000	)	$	(14,027,000	)	$	(13,131,000	)	$	(14,157,000	)	$	(10,649,000	)	$	(9,724,000	)	$	(7,790,000	)	$	(7,600,000	)
Basic and diluted loss per common share	$	(0.07	)	$	(0.08	)	$	(0.07	)	$	(0.08	)	$	(0.06	)	$	(0.06	)	$	(0.05	)		$ (0. 05)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Receivables) (USD $)	Apr. 30, 2015	Apr. 30, 2014
Accounting Policies [Abstract]
Trade receivables	$ 3,423,000	$ 1,219,000
Other receivables, net	390,000	113,000
Trade and other receivables, net	$ 3,813,000	$ 1,332,000

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Inventories) (USD $)	Apr. 30, 2015	Apr. 30, 2014
Accounting Policies [Abstract]
Raw materials	$ 3,821,000	$ 2,370,000
Work-in-process	3,533,000	3,160,000
Total inventories	$ 7,354,000	$ 5,530,000

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2012
Cash and cash equivalents	$ 68,001,000	$ 77,490,000	$ 35,204,000	$ 18,033,000
Allowance for doubtful accounts - other receivables	5,000	13,000
Allowance for doubtful accounts - unbilled Indirect Rates	$ 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	8,744,285	5,424,803	5,860,305
Conversion of Series E Preferred Stock
Shares excluded from weighted average diluted shares outstanding	9,879,531	1,253,452
Accounts Receivable [Member] \| Two Customers [Member]
Concentration of trade receivables percentage	97.00%	99.00%

- 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

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

4. COMMITMENTS AND CONTINGENCIES (Details) (USD $)	Apr. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
2016	$ 1,359,000
2017	1,530,000
2018	1,206,000
2019	490,000
2020	504,000
Thereafter	650,000
Operating Leases, Future Minimum Payments Due	$ 5,739,000

5. LICENSING AGREEMENTS (Details) (USD $)	12 Months Ended
5. LICENSING AGREEMENTS (Details) (USD $)	Apr. 30, 2014	Apr. 30, 2015
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
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 - Preferred Stock Dividends) (Series E Preferred Stock [Member], USD $)	12 Months Ended
	Apr. 30, 2015
Dividend paid April 1, 2014 [Member]
Declaration Date	Mar. 11, 2014
Dividend per share	$ 0.29890
Annualized percentage rate	10.50%
Liquidation preference	$ 25.00
Accrual period	2/19/2014 - 3/31/2014
Record date	Mar. 21, 2014
Payment date	Apr. 01, 2014
Dividend paid July 1, 2014 [Member]
Declaration Date	Jun. 10, 2014
Dividend per share	$ 0.65625
Annualized percentage rate	10.50%
Liquidation preference	$ 25.00
Accrual period	4/1/2014 - 6/30/2014
Record date	Jun. 20, 2014
Payment date	Jul. 01, 2014
Dividend paid October 1, 2014 [Member]
Declaration Date	Sep. 08, 2014
Dividend per share	$ 0.65625
Annualized percentage rate	10.50%
Liquidation preference	$ 25.00
Accrual period	7/1/2014 - 9/30/2014
Record date	Sep. 19, 2014
Payment date	Oct. 01, 2014
Dividend paid January 2, 2015 [Member]
Declaration Date	Dec. 09, 2014
Dividend per share	$ 0.65625
Annualized percentage rate	10.50%
Liquidation preference	$ 25.00
Accrual period	10/1/2014 - 12/31/2014
Record date	Dec. 19, 2014
Payment date	Jan. 02, 2015
Dividend paid April 1, 2015 [Member]
Declaration Date	Mar. 10, 2015
Dividend per share	$ 0.65625
Annualized percentage rate	10.50%
Liquidation preference	$ 25.00
Accrual period	1/1/2015 - 3/31/2015
Record date	Mar. 20, 2015
Payment date	Apr. 01, 2015

- Definition

The per share liquidation preference (or restrictions) of nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer) that has a preference in involuntary liquidation considerably in excess of the par or stated value of the shares. The liquidation preference is the difference between the preference in liquidation and the par or stated values of the share.

+ References+ Details

6. STOCKHOLDERS' EQUITY (Details Narrative) (USD $)	12 Months Ended
6. STOCKHOLDERS' EQUITY (Details Narrative) (USD $)	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Proceeds from sale of preferred stock	$ 18,203,000	$ 17,917,000	$ 0
December 2010 AMI Agreement
Stock sold, shares			31,863,368
Proceeds from sale of common stock			27,382,000
Issuance costs			895,000
December 2012 AMI Agreement
Stock sold, shares	3,983,360	33,527,369	9,320,675
Proceeds from sale of common stock	6,204,000	55,424,000	13,372,000
Issuance costs	161,000	1,504,000	337,000
June 2014 AMI Agreement
Stock sold, shares	9,681,757
Proceeds from sale of common stock	13,544,000
Issuance costs	352,000
Proceeds remaining under the agreement	11,456,000
June 2014 Series E Preferred Stock AMI Agreement
Stock sold, shares	799,764
Proceeds from sale of common stock	19,205,000
Issuance costs	1,002,000
Proceeds remaining under the agreement	$ 10,795,000
Series E Preferred Stock [Member]
Common shares reserved for issuance	45,668,156
Stock Incentive Plans [Member]
Common shares reserved for issuance	24,880,481
Employee Stock Purchase Plan [Member]
Common shares reserved for issuance	2,443,056
Warrants
Common shares reserved for issuance	273,280

7. EQUITY COMPENSATION PLANS (Details - Assumptions) (Stock Options)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Stock Options
Risk-free interest rate	1.95%	1.32%	0.96%
Expected life (in years)	5 years 8 months 27 days	5 years 10 months 2 days	5 years 10 months 6 days
Expected volatility	111.78%	113.92%	95.87%
Expected dividend yield	0.00%	0.00%	0.00%

7. EQUITY COMPENSATION PLANS (Details - Option activity) (Stock Options, USD $)	12 Months Ended
	Apr. 30, 2015
Stock Options
Number of Options
Number of Options Outstanding, Beginning	17,165,333
Number of Options Granted	4,550,198
Number of Options Exercised	(312,893)
Number of Options Cancelled or Expired	(693,966)
Number of Options Outstanding, Ending	20,708,672
Exercisable and expected to vest	20,626,944
Exercisable, April 30, 2015	16,954,935
Weighted Average Exercise Price
Weighted Average Exercise Price Outstanding, Beginning	$ 1.58
Weighted Average Exercise Price Granted	$ 1.72
Weighted Average Exercise Price Exercised	$ 0.96
Weighted Average Exercise Price Canceled	$ 3.91
Weighted Average Exercise Price Outstanding, Ending	$ 1.54
Weighted Average Exercise Price, Exercisable and expected to vest	$ 1.54
Weighted Average Exercise Price Exercisable, April 30, 2015	$ 1.51
Weighted Average Remaining Contractual Life (in years)
Weighted Average Remaining Contractual Life (in years) Outstanding	7 years 3 months 15 days
Weighted Average Remaining Contractual Life (in years) Vested and expected to vest	7 years 3 months 15 days
Weighted Average Remaining Contractual Life (in years) Exercisable, April 30, 2014	6 years 11 months 16 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value Outstanding	$ 3,577,000
Aggregate Intrinsic Value vested and expected to vest	3,577,000
Aggregate Intrinsic Value Exercisable, April 30, 2015	$ 3,533,000

7. EQUITY COMPENSATION PLANS (Details - Assumptions Employss Stock Purchase Plan) (Employee Stock Purchase Plan)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Employee Stock Purchase Plan
Risk-free interest rate	0.06%	0.08%	0.15%
Expected life (in years)	6 months	6 months	6 months
Expected volatility	63.54%	93.39%	167.36%
Expected dividend yield	0.00%	0.00%	0.00%

7. EQUITY COMPENSATION PLANS (Details Narrative) (USD $)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Cash received from stock options exercised	$ 298,000	$ 944,000	$ 96,000
Stock Option [Member]
Weighted-average grant date fair value of options granted	$ 1.43	$ 1.19	$ 0.69
Aggregate intrinsic value of stock options exercised	192,000	908,000	106,000
Cash received from stock options exercised	298,000	944,000	96,000
Issuance costs	3,000	4,000	2,000
Unrecognized compensation costs related to non-vested stock options	3,671,000
Unrecognized compensation cost weighted average vesting period	1 year 3 months 11 days
Restricted Stock Awards [Member]
Weighted-average grant date fair value of options granted		$ 1.39
Aggregate intrinsic value of stock options exercised		139,000
Employee Stock Purchase Plan
Common stock issued under ESPP plan, shares purchased	497,453	498,050	998,556
ESPP price per share	$ 1.22	$ 1.09	$ 0.53
Stock Incentive Plans [Member]
Common shares reserved for issuance	24,880,481
Employee Stock Purchase Plan [Member]
Common shares reserved for issuance	2,443,056
Non Employee [Member]
Unrecognized compensation costs related to non-vested stock options	146,000
Unrecognized compensation cost weighted average vesting period	11 months 23 days
Share-based compensation expense	$ 289,000	$ 391,000	$ 320,000

8. WARRANTS (Details Narratives) (Warrants, USD $)	12 Months Ended
8. WARRANTS (Details Narratives) (Warrants, USD $)	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Warrants
Warrants outstanding	273,280
Warrants outstanding exercise price	$ 2.47
Warrants issued	0	0
Warrants exercised	0	0	118,444

9. INCOME TAXES (Details - Provision for Income taxes) (USD $)	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Income Tax Disclosure [Abstract]
Provision for federal income taxes at statutory rate	$ (17,122,000)	$ (12,023,000)	$ (10,125,000)
State income taxes	(4,450,000)	(3,124,000)	(2,631,000)
Expiration and adjustments of deferred tax assets	1,790,000	2,751,000	(95,630,000)
Change in valuation allowance	19,532,000	12,153,000	108,310,000
Other, net	250,000	243,000	76,000
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, 2015	Apr. 30, 2014
Income Tax Disclosure [Abstract]
Share-based compensation	$ 7,119,000	$ 4,716,000
Deferred revenue	2,840,000	2,370,000
Depreciation and amortization	530,000	664,000
Accrued liabilities	2,235,000	1,650,000
Net operating losses	133,800,000	117,592,000
Total deferred tax assets	146,524,000	126,992,000
Less valuation allowance	(146,524,000)	(126,992,000)
Net deferred tax assets	$ 0	$ 0

9. INCOME TAXES (Details Narrative) (USD $)	12 Months Ended
9. INCOME TAXES (Details Narrative) (USD $)	Apr. 30, 2015
Net operating loss attributable to excess tax deductions on share-based compensation	$ 5,956,000
State and Local Jurisdiction [Member]
Net operating loss carry forward	246,617,000
Operating loss carryforward expiration dates	2016
Domestic Country [Member]
Net operating loss carry forward	$ 336,914,000
Operating loss carryforward expiration dates	2019 through 2035

11. SEGMENT REPORTING (Details) (USD $)	3 Months Ended								12 Months Ended
11. SEGMENT REPORTING (Details) (USD $)	Apr. 30, 2015	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2014	Apr. 30, 2014	Jan. 31, 2014	Oct. 31, 2013	Jul. 31, 2013	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Segment Reporting [Abstract]
Contract manufacturing services revenue									$ 26,744,000	$ 22,294,000	$ 21,333,000
Cost of contract manufacturing services									15,593,000	13,110,000	12,595,000
Gross profit	4,550,000	2,564,000	2,124,000	1,913,000	2,645,000	1,469,000	3,159,000	1,911,000	11,151,000	9,184,000	8,738,000
Revenue from products in research and development									37,000	107,000	350,000
Research and development expense									(42,996,000)	(27,723,000)	(24,306,000)
Selling, general and administrative expense									(18,691,000)	(17,274,000)	(13,134,000)
Other income (expense), net									141,000	344,000	268,000
Loss on early extinguishment of debt									0	0	(1,696,000)
Net loss	$ (12,135,000)	$ (12,994,000)	$ (12,100,000)	$ (13,129,000)	$ (10,248,000)	$ (9,724,000)	$ (7,790,000)	$ (7,600,000)	$ (50,358,000)	$ (35,362,000)	$ (29,780,000)

11. SEGMENT REPORTING (Details - Percentage breakdown)	12 Months Ended
11. SEGMENT REPORTING (Details - Percentage breakdown)	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Customer revenue as a percentage of revenue	100.00%	100.00%	100.00%
Halozyme Therapeutics, Inc [Member]
Customer revenue as a percentage of revenue	79.00%	91.00%	81.00%
Customer A [Member]
Customer revenue as a percentage of revenue	12.00%	0.00%	0.00%
Customer B [Member]
Customer revenue as a percentage of revenue	0.00%	1.00%	17.00%
Other Customers
Customer revenue as a percentage of revenue	9.00%	8.00%	2.00%

12. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $)	3 Months Ended								12 Months Ended
	Apr. 30, 2015	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2014	Apr. 30, 2014	Jan. 31, 2014	Oct. 31, 2013	Jul. 31, 2013	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Quarterly Financial Information Disclosure [Abstract]
Net revenues	$ 9,308,000	$ 5,677,000	$ 6,300,000	$ 5,496,000	$ 6,474,000	$ 3,885,000	$ 7,354,000	$ 4,688,000	$ 26,781,000	$ 22,401,000	$ 21,683,000
Gross profit	4,550,000	2,564,000	2,124,000	1,913,000	2,645,000	1,469,000	3,159,000	1,911,000	11,151,000	9,184,000	8,738,000
Loss from operations	(12,169,000)	(13,022,000)	(12,137,000)	(13,171,000)	(10,529,000)	(9,743,000)	(7,814,000)	(7,620,000)
Net loss	(12,135,000)	(12,994,000)	(12,100,000)	(13,129,000)	(10,248,000)	(9,724,000)	(7,790,000)	(7,600,000)	(50,358,000)	(35,362,000)	(29,780,000)
Series E preferred stock accumulated dividends	(1,378,000)	(1,033,000)	(1,031,000)	(1,028,000)	(401,000)	0	0	0
Net loss attributable to common stockholders	$ (13,513,000)	$ (14,027,000)	$ (13,131,000)	$ (14,157,000)	$ (10,649,000)	$ (9,724,000)	$ (7,790,000)	$ (7,600,000)	$ (54,054,000)	$ (35,763,000)	$ (29,780,000)
Basic and diluted loss per common share	$ (0.07)	$ (0.08)	$ (0.07)	$ (0.08)	$ (0.06)	$ (0.06)	$ (0.05)	$ (0.05)	$ (0.30)	$ (0.22)	$ (0.25)

- 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, 2015	Apr. 30, 2014	Apr. 30, 2013
Valuation and Qualifying Accounts [Abstract]
Valuation reserve, beginning balance	$ 105,000	$ 108,000	$ 111,000
Additions	0	0	0
Deductions	(8,000)	(3,000)	(3,000)
Valuation reserve, ending balance	$ 97,000	$ 105,000	$ 108,000

10. BENEFIT PLAN (Details)	12 Months Ended
10. BENEFIT PLAN (Details)	Apr. 30, 2015
1-3 Years of Service [Member]
Employer match	50.00%
4-6 Years of Service [Member]
Employer match	65.00%
7-9 Years of Service [Member]
Employer match	80.00%
10 or more Years of Service [Member]
Employer match	100.00%

10. BENEFIT PLAN (Details Narrative) (USD $)	12 Months Ended
10. BENEFIT PLAN (Details Narrative) (USD $)	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Compensation and Retirement Disclosure [Abstract]
Matching contributions	$ 454,000	$ 300,000	$ 284,000

11. SEGMENT REPORTING (Details - Long-lived assets) (USD $)	Apr. 30, 2015	Apr. 30, 2014
Long-lived assets	$ 15,124,000	$ 2,447,000
Contract manufacturing services [Member]
Long-lived assets	12,800,000	1,956,000
Products in research and development [Member]
Long-lived assets	$ 2,324,000	$ 491,000