Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Jan. 31, 2016	Mar. 08, 2016
Document And Entity Information
Entity Registrant Name	PEREGRINE PHARMACEUTICALS INC
Entity Central Index Key	0000704562
Document Type	10-Q
Document Period End Date	Jan. 31, 2016
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 Common Stock, Shares Outstanding		233,738,426
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2016

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jan. 31, 2016	Apr. 30, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 67,470,000	$ 68,001,000
Trade and other receivables, net	8,599,000	3,813,000
Inventories	15,189,000	7,354,000
Prepaid expenses and other current assets, net	2,346,000	1,355,000
Total current assets	93,604,000	80,523,000
Property and equipment, net	23,846,000	15,124,000
Other assets	1,602,000	1,817,000
TOTAL ASSETS	119,052,000	97,464,000
CURRENT LIABILITIES:
Accounts payable	7,844,000	10,385,000
Accrued clinical trial and related fees	6,975,000	3,910,000
Accrued payroll and related costs	4,497,000	4,606,000
Deferred revenue	15,418,000	6,630,000
Customer deposits	22,433,000	11,363,000
Other current liabilities	1,047,000	437,000
Total current liabilities	58,214,000	37,331,000
Deferred rent, less current portion	$ 905,000	$ 1,098,000
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred stock - $0.001 par value; authorized 5,000,000 shares; 1,577,440 and 1,574,764 shares issued and outstanding at January 31, 2016 and April 30, 2015, respectively	$ 2,000	$ 2,000
Common stock - $0.001 par value; authorized 500,000,000 shares; 232,231,242 and 193,346,627 shares issued and outstanding at January 31, 2016 and April 30, 2015, respectively	232,000	193,000
Additional paid-in-capital	557,091,000	512,464,000
Accumulated deficit	(497,392,000)	(453,624,000)
Total stockholders' equity	59,933,000	59,035,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 119,052,000	$ 97,464,000

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jan. 31, 2016	Apr. 30, 2015
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	1,577,440	1,574,764
Preferred stock, shares outstanding	1,577,440	1,574,764
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	325,000,000
Common stock, shares issued	232,231,242	193,346,627
Common stock, shares outstanding	232,231,242	193,346,627

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
REVENUES:
Contract manufacturing revenue	$ 6,672,000	$ 5,677,000	$ 25,574,000	$ 17,436,000
License revenue	37,000	0	329,000	37,000
Total revenues	6,709,000	5,677,000	25,903,000	17,473,000
COSTS AND EXPENSES:
Cost of contract manufacturing	3,896,000	3,113,000	13,245,000	10,835,000
Research and development	15,156,000	11,261,000	43,264,000	31,465,000
Selling, general and administrative	4,524,000	4,325,000	13,839,000	13,503,000
Total costs and expenses	23,576,000	18,699,000	70,348,000	55,803,000
LOSS FROM OPERATIONS	(16,867,000)	(13,022,000)	(44,445,000)	(38,330,000)
Interest and other income	34,000	29,000	691,000	108,000
Interest and other expense	(14,000)	(1,000)	(14,000)	(1,000)
Total other income (expense), net	20,000	28,000	677,000	107,000
NET LOSS	(16,847,000)	(12,994,000)	(43,768,000)	(38,223,000)
COMPREHENSIVE LOSS	(16,847,000)	(12,994,000)	(43,768,000)	(38,223,000)
Series E preferred stock accumulated dividends	(1,380,000)	(1,033,000)	(3,448,000)	(2,577,000)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ (18,227,000)	$ (14,027,000)	$ (47,216,000)	$ (40,800,000)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - Basic and Diluted	227,389,225	182,519,923	209,549,670	180,562,524
BASIC AND DILUTED LOSS PER COMMON SHARE	$ (.08)	$ (.08)	$ (.23)	$ (.23)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Jan. 31, 2016	Jan. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (43,768,000)	$ (38,223,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation	3,740,000	5,280,000
Depreciation and amortization	921,000	803,000
Loss on disposal of property and equipment	14,000	1,000
Changes in operating assets and liabilities:
Trade and other receivables, net	(4,786,000)	(4,952,000)
Inventories	(7,835,000)	(618,000)
Prepaid expenses and other current assets, net	(991,000)	485,000
Other non-current assets	(211,000)	(1,000)
Accounts payable	(4,289,000)	1,870,000
Accrued clinical trial and related fees	3,065,000	(1,316,000)
Accrued payroll and related expenses	(109,000)	(121,000)
Deferred revenue	8,788,000	219,000
Customer deposits	11,070,000	2,551,000
Other accrued expenses and current liabilities	610,000	1,000
Deferred rent	(193,000)	410,000
Net cash used in operating activities	(33,974,000)	(33,611,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Property and equipment acquisitions	(7,909,000)	(4,805,000)
Decrease in other assets	426,000	1,139,000
Net cash used in investing activities	(7,483,000)	(3,666,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock, net of issuance costs of $633,000 and $193,000, respectively	43,498,000	7,205,000
Proceeds from issuance of Series E preferred stock, net of issuance costs of $1,000 and $553,000, respectively	59,000	9,567,000
Proceeds from issuance of common stock under Employee Stock Purchase Plan	334,000	307,000
Proceeds from exercise of stock options, net of issuance costs of $1,000 and $3,000, respectively	138,000	277,000
Dividends paid on preferred stock	(3,103,000)	(2,318,000)
Principal payments on capital leases	0	(13,000)
Net cash provided by financing activities	40,926,000	15,025,000
NET DECREASE IN CASH AND CASH EQUIVALENTS	(531,000)	(22,252,000)
CASH AND CASH EQUIVALENTS, beginning of period	68,001,000	77,490,000
CASH AND CASH EQUIVALENTS, end of period	67,470,000	55,238,000
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Accounts payable and other liabilities for purchase of property and equipment	1,748,000	2,510,000
Lease incentives	$ 0	$ 370,000

1. ORGANIZATION AND BUSINESS DESCRIPTION

9 Months Ended

Jan. 31, 2016

Organization And Business Description

ORGANIZATION AND 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. Bavituximab is our lead immunotherapy candidate in clinical development. In addition to our product development efforts, we operate a wholly-owned biomanufacturing subsidiary, Avid Bioservices, Inc. (“Avid”), a contract manufacturing organization that provides fully integrated current Good Manufacturing Practices (“cGMP”) services from cell line development to commercial cGMP biomanufacturing for its third-party customers while also supporting the clinical drug supply of bavituximab.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Jan. 31, 2016

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) related to quarterly reports on Form 10-Q. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for a complete set of financial statements. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended April 30, 2015. The condensed consolidated balance sheet at April 30, 2015, has been derived from audited financial statements at that date. The unaudited financial information for the interim periods presented herein reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial condition and results of operations for the periods presented, with such adjustments consisting only of normal recurring adjustments. Results of operations for interim periods covered by this quarterly report on Form 10-Q may not necessarily be indicative of results of operations for the full fiscal year or any other interim period.

The unaudited condensed consolidated financial statements include the accounts of Peregrine and Avid. All intercompany accounts and transactions among the consolidated entities have been eliminated in the unaudited condensed consolidated financial statements.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts, as well as disclosures of commitments and contingencies in the financial statements and accompanying notes. Actual results could differ materially from those estimates and assumptions.

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

Liquidity and Financial Condition

At January 31, 2016, we had $67,470,000 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 or from the sale 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 operations 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) generating additional revenue from Avid, or (iii) licensing or partnering our product candidates in development.

Historically, we have funded a significant portion of our operations through the issuance of equity. During the nine months ended January 31, 2016, we raised $44,131,000 in aggregate gross proceeds from the sale of shares of our common stock (Note 6). As of January 31, 2016, $116,356,000 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.

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 or 10.5% Series E Convertible Preferred Stock (the “Series E Preferred Stock”). The market demand or liquidity of our common stock 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, such as the subsequent event disclosed in Note 12, and significant delays in one or more clinical trials. If we are unable to either (i) raise sufficient capital in the equity markets, (ii) generate additional revenue from Avid, or (iii) license or partner our products in development, or any combination thereof, we may need to delay, scale back, or eliminate some or all our research and development efforts 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 and may cause further dilution to our stockholders.

Cash and Cash Equivalents

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

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 unaudited condensed 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 95% of our trade receivable balance as of January 31, 2016 (Note 3), represents amounts due from two customers.

In addition, contract manufacturing revenue generated by Avid has historically been derived from a small customer base (Note 9). 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

Revenue Recognition

We currently derive revenue from 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 elements.

Revenue arrangements with multiple elements are divided into separate units of accounting if certain criteria are met, including whether the delivered element has stand-alone value to the customer or licensing partner. When deliverables are separable, consideration received is allocated among the separate units based on their respective fair values, and the applicable revenue recognition criteria are applied to each of the separate units, which may require the use of significant judgement. Deliverables are considered separate units of accounting if (1) the delivered item(s) has value to the customer on a stand-alone basis and (2) the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) 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.

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. For arrangements that include multiple elements, we follow the authoritative guidance for revenue recognition regarding arrangements with multiple deliverables, as described above.

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 and inventory 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 unaudited condensed consolidated financial statements. We also record a provision for estimated contract losses, if any, in the period in which they are determined.

License Revenue

License revenue related to licensing agreements associated with our technologies under development 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. For licensing agreements that include multiple elements, we follow the authoritative guidance for revenue recognition regarding arrangements with multiple deliverables, as described above.

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:

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;

The consideration relates solely to past performance; and

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 above 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 unaudited condensed consolidated financial statements.

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 three and nine months ended January 31, 2016 and 2015, there was no impairment of the value of our long-lived assets.

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 – Observable inputs, such as 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 that are considered significant to the overall fair value measurement of the assets or liabilities; therefore, requiring the company to develop its own valuation techniques and assumptions.

As of January 31, 2016 and April 30, 2015, 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 represent advance billings and/or payments received from Avid’s third-party customers prior to the initiation of contract manufacturing services.

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 unaudited condensed consolidated financial statements for the three and nine months ended January 31, 2016 and 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. 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 January 31, 2016, there were no outstanding share-based awards with market or performance conditions.

Periodically, we 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 remeasured 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).

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 shares of common stock outstanding during the period excluding the dilutive effects of stock options, shares of common stock expected to be issued under our Employee Stock Purchase Plan (the “ESPP”), warrants, and Series E Preferred Stock outstanding during the period. Diluted net loss per common share is computed by dividing our net loss attributable to common stockholders by the sum of the weighted average number of shares of common stock outstanding during the period plus the potential dilutive effects of stock options, shares of common stock expected to be issued under our ESPP, warrants, and Series E Preferred Stock outstanding during the period. Net loss attributable to common stockholders represents our net loss plus Series E Preferred Stock accumulated dividends. Series E Preferred Stock accumulated dividends include dividends declared for the period (regardless of whether or not the dividends have been paid) and dividends accumulated for the period (regardless of whether or not the dividends have been declared).

The potential dilutive effect of stock options, shares of common stock expected to be issued under our ESPP, 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. However, because the impact of stock options, shares of common stock expected to be issued under our ESPP, warrants, and Series E Preferred Stock are anti-dilutive during periods of net loss, there was no difference between basic and diluted loss per common share amounts for the three and nine months ended January 31, 2016 and 2015.

The calculation of weighted average diluted shares outstanding for the three- and nine-month periods ended January 31, 2016 and 2015 excludes the dilutive effect of the following weighted average outstanding stock options and shares of common stock expected to be issued under our employee stock purchase plan as their impact are anti-dilutive during periods of net loss:

	Three Months Ended January 31,				Nine Months Ended January 31,
	2016		2015		2016		2015

Stock Options		2,012,239		3,209,716		2,189,915		4,067,214
ESPP		16,932		4,159		61,817		28,376
Total		2,029,171		3,213,875		2,251,732		4,095,590

The calculation of weighted average diluted shares outstanding for the three- and nine-month periods ended January 31, 2016 and 2015 also excludes the following weighted average outstanding stock options, warrants, and Series E Preferred Stock (assuming the if-converted method), as their exercise prices or conversion price were greater than the average market price of our common stock during the respective periods, resulting in an anti-dilutive effect:

	Three Months Ended January 31,				Nine Months Ended January 31,
	2016		2015		2016		2015

Stock Options		19,129,031		8,569,057		15,800,281		8,500,817
Warrants		273,280		273,280		273,280		273,280
Series E Preferred Stock		13,260,355		9,912,502		13,249,024		9,321,584
Total		32,662,666		18,754,839		29,322,585		18,095,681

Pending Adoption of Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606): Revenue from Contracts with Customers, which amends the guidance in former ASC 605, Revenue Recognition, which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. ASU No. 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date of ASU No. 2014-09 by one year, but permits entities to adopt one year earlier if they choose (i.e., the original effective date). As such, ASU No. 2014-09 will be effective for annual reporting periods ending after December 15, 2017, which will be our fiscal year 2019 beginning May 1, 2018. 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 beginning 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, the 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 beginning 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.

In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. ASU 2015-11 requires that for entities that measure inventory using the first-in, first-out method, inventory should be measured at the lower of cost and net realizable value. ASU 2015-11 defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, which will be our fiscal year 2018 beginning May 1, 2017, and interim periods within those fiscal years. The amendments should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. We are currently in the process of evaluating the impact of adoption of ASU No. 2015-11 on our consolidated financial statements and related disclosures.

In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. Under existing standards, deferred taxes for each tax-paying jurisdiction are presented as a net current asset or liability and net long-term asset or liability. To simplify presentation, the new guidance will require that all deferred tax assets and liabilities, along with related valuation allowances, be classified as long-term on the balance sheet. As a result, each tax-paying jurisdiction will now only have one net long-term deferred tax asset or liability. The new guidance does not change the existing requirement that prohibits offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. ASU No. 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, which will be our fiscal year 2017 beginning May 1, 2016. We are currently in the process of evaluating the impact of adoption of ASU No. 2015-17, however, we do not expect the adoption of the guidance to have a material impact on our consolidated financial statements and related disclosures.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities. ASU No. 2016-01 requires several targeted changes including that equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) be measured at fair value with changes in fair value recognized in net income. The new guidance also changes certain disclosure requirements and other aspects of current U.S. GAAP. Amendments are to be applied as a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. ASU No. 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which will be our fiscal year beginning May 1, 2018. Early adoption is not permitted with the exception of certain targeted provisions. We are currently in the process of evaluating the impact of adoption of ASU No. 2016-01 on our consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU No. 2016-2 requires an entity to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU No. 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. ASU No. 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, which will be our fiscal year beginning May 1, 2019. Early adoption is permitted. We are currently in the process of evaluating the impact of adoption of ASU No. 2016-02 on our consolidated financial statements and related disclosures.

3. TRADE AND OTHER RECEIVABLES

9 Months Ended

Jan. 31, 2016

Receivables [Abstract]

TRADE AND OTHER RECEIVABLES

Trade and other receivables, net, consists of the following:

	January 31, 2016		April 30, 2015
Trade receivables⁽¹⁾	$	8,234,000	$	3,423,000
Other receivables, net		365,000		390,000
Trade and other receivables, net	$	8,599,000	$	3,813,000

______________

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

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 January 31, 2016 and April 30, 2015, we determined an allowance for doubtful accounts of nil and $5,000, respectively, was necessary with respect to our other receivables, and no allowance was necessary with respect to our trade receivables.

4. PROPERTY AND EQUIPMENT

9 Months Ended

Jan. 31, 2016

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

Property and equipment is recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related asset, generally ranging from three to ten years. Amortization of leasehold improvements is calculated using the straight-line method over the shorter of the estimated useful life of the asset or the remaining lease term. Construction-in-progress represents expenditures related to a new manufacturing facility we constructed to support the anticipated growth of our contract manufacturing business while also providing sufficient manufacturing capacity to support our internal product development efforts. The construction of the manufacturing facility was completed and placed into service during the quarter ended January 31, 2016, and, accordingly, the construction costs were transferred from construction-in-progress to leasehold improvements and equipment. No interest was incurred or capitalized as construction-in-progress as of January 31, 2016 and depreciation was not recorded until the asset was placed into service.

Property and equipment, net, consists of the following:

	January 31, 2016			April 30, 2015
Leasehold improvements	$	18,946,000		$	1,538,000
Laboratory equipment		9,912,000			5,965,000
Furniture, fixtures, office equipment and software		3,984,000			3,991,000
Construction-in-progress		–			11,819,000
		32,842,000			23,313,000
Less accumulated depreciation and amortization		(8,996,000	)		(8,189,000	)
Property and equipment, net	$	23,846,000		$	15,124,000

Depreciation and amortization expense for the three and nine months ended January 31, 2016 was $464,000 and $921,000, respectively. Depreciation and amortization expense for the three and nine months ended January 31, 2015 was $261,000 and $803,000, respectively.

5. INVENTORIES

9 Months Ended

Jan. 31, 2016

Inventory Disclosure [Abstract]

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:

	January 31, 2016		April 30, 2015
Raw materials	$	7,202,000	$	3,821,000
Work-in-process		7,987,000		3,533,000
Total inventories	$	15,189,000	$	7,354,000

6. STOCKHOLDERS' EQUITY

9 Months Ended

Jan. 31, 2016

Equity [Abstract]

STOCKHOLDERS' EQUITY

Common 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 nine months ended January 31, 2016, we issued common stock under the following agreements:

June 2014 AMI Sales Agreement - On June 13, 2014, we entered into an At Market Issuance Sales Agreement with MLV & Co. LLC (“MLV”), as amended on April 13, 2015 (“June 2014 AMI Sales Agreement”), 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 shelf registration statement on Form S-3 (File No. 333-201245), which was declared effective by the SEC on January 15, 2015 (“January 2015 Shelf”). Sales of our common stock through MLV may be made by any method that is deemed an “at the market offering” as defined in Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”). We pay MLV a commission equal to 2.5% of the gross proceeds from the sale of our common stock pursuant to the June 2014 AMI Sales Agreement. During the nine months ended January 31, 2016, we sold 8,629,738 shares of common stock at market prices under the June 2014 AMI Sales Agreement, for aggregate gross proceeds of $11,456,000 before deducting commissions and other issuance costs of $311,000. As of January 31, 2016, we had raised the full amount of gross proceeds available to us under the June 2014 AMI Sales Agreement.

August 2015 AMI Sales Agreement - On August 7, 2015, we entered into an At Market Issuance Sales Agreement (“August 2015 AMI Sales 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 $30,000,000, in registered transactions from our January 2015 Shelf. Sales of our common stock through MLV may be made by any method that is deemed an “at the market offering” as defined in Rule 415 of the Securities Act. We pay MLV a commission equal to 2.5% of the gross proceeds from the sale of our common stock pursuant to the August 2015 AMI Sales Agreement. During the nine months ended January 31, 2016, we sold 6,751,651 shares of common stock at market prices under the August 2015 AMI Sales Agreement for aggregate gross proceeds of $7,447,000 before deducting commissions and other issuance costs of $190,000. As of January 31, 2016, aggregate gross proceeds of up to $22,553,000 remained available to us under the August 2015 AMI Sales Agreement.

Equity Distribution Agreement - On August 7, 2015, we entered into an Equity Distribution Agreement, with Noble International Investments, Inc., doing business as Noble Life Science Partners, a division of Noble Financial Capital Markets (“Noble”), pursuant to which we may sell shares of our common stock through Noble, as agent, for aggregate gross proceeds of up to $20,000,000, in registered transactions from our January 2015 Shelf. Sales of our common stock through Noble may be made by any method that is deemed an “at the market offering” as defined in Rule 415 of the Securities Act. We pay Noble a commission equal to 2.5% of the gross proceeds from the sale of our common stock pursuant to the Equity Distribution Agreement. During the nine months ended January 31, 2016, we sold 4,455,278 shares of common stock at market prices under the Equity Distribution Agreement for aggregate gross proceeds of $5,228,000 before deducting commissions and other issuance costs of $131,000. As of January 31, 2016, aggregate gross proceeds of up to $14,772,000 remained available to us under the Equity Distribution Agreement.

Common Stock Purchase Agreement - On October 30, 2015, we entered into a Common Stock Purchase Agreement with Eastern Capital Limited, pursuant to which we issued and sold 18,518,518 shares of our common stock, at a purchase price of $1.08 per share for aggregate gross proceeds of $20,000,000 before deducting issuance costs of $1,000. These shares of common stock were sold under our January 2015 Shelf pursuant to a prospectus supplement filed with the SEC on October 30, 2015.

Series E Preferred Stock

June 2014 Series E AMI Sales Agreement

On June 13, 2014, we entered into an At Market Issuance Sales Agreement (“Series E AMI Sales 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 shelf registration statement on Form S-3 (File No. 333-193113), which was declared effective by the SEC on January 16, 2014. Sales of our common stock through MLV may be made by any method that is deemed an “at the market offering” as defined in Rule 415 of the Securities Act. We pay MLV a commission of up to 5% of the gross proceeds from the sale of our Series E Preferred Stock pursuant to the August 2015 AMI Sales Agreement. During the nine months ended January 31, 2016, we sold 2,676 shares of our Series E Preferred Stock at market prices under the Series E AMI Sales Agreement for aggregate gross proceeds of $60,000 before deducting commissions and other issuance costs of $1,000. As of January 31, 2016, aggregate gross proceeds of up to $10,735,000 remained available to us under the Series E AMI Sales Agreement.

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 (as defined in the Certificate of Designations) of our company 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 our 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 Dividends

The following table summarizes the Series E Preferred Stock dividend activity for the nine months ended January 31, 2016:

Declaration

Date

Dividend

Per Share

Annualized

Percentage

Rate

Liquidation

Preference

Accrual Period

Record

Date

Payment

Date

6/5/2015

$0.65625

10.50%

$25.00

4/1/2015 – 6/30/2015

6/19/2015

7/1/2015

9/8/2015

$0.65625

10.50%

$25.00

7/1/2015 – 9/30/2015

9/18/2015

10/1/2015

12/7/2015

$0.65625

10.50%

$25.00

10/1/2015 – 12/31/2015

12/18/2015

1/4/2016

Shares of Common Stock Authorized and Reserved for Future Issuance

We are authorized to issue up to 500,000,000 shares of our common stock. As of January 31, 2016, 232,231,242 shares of our common stock were issued and outstanding. In addition, our common stock outstanding as of January 31, 2016 excluded the following shares of common stock reserved for future issuance:

39,587,885 shares of common stock reserved for issuance under outstanding option grants and available for issuance under our stock incentive plans;

2,090,892 shares of common stock reserved for and available for issuance under our ESPP;

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

45,745,760 shares of common stock issuable upon conversion of our outstanding Series E Preferred Stock ⁽¹⁾.

_____________

⁽¹⁾

The Series E Preferred Stock is convertible into a number of shares of common stock determined by dividing the liquidation preference of $25.00 per share by the conversion price, currently $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 13,145,333 shares of our common stock. However, we have reserved the maximum number of shares of our common stock that could be issued upon a change of control event assuming our shares of common stock are acquired for consideration of $0.855 per share or less. In this scenario, each outstanding share of Series E Preferred Stock could be converted into 29 shares of common stock, representing the Share Cap.

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

+ Details

7. EQUITY COMPENSATION PLANS

9 Months Ended

Jan. 31, 2016

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

EQUITY COMPENSATION PLANS

Stock Incentive Plans

As of January 31, 2016, we had an aggregate of 39,587,885 shares of common stock reserved for issuance under our stock incentive plans, of which, 23,654,555 shares were subject to outstanding options and 15,933,330 shares were available for future grants of share-based awards.

The following summarizes our stock option transaction activity for the nine months ended January 31, 2016:

Stock Options	Shares		Weighted Average Exercisable Price
Outstanding, May 1, 2015	20,708,672		$ 1.54
Granted	3,878,509		$ 1.30
Exercised	(177,266	)	$ 0.79
Canceled or expired	(755,360	)	$ 1.82
Outstanding, January 31, 2016	23,654,555		$ 1.50

Employee Stock Purchase Plan

We have reserved a total of 5,000,000 shares of common stock to be purchased under our ESPP, of which 2,090,892 shares remained available to purchase at January 31, 2016. The ESPP allows eligible employees on a voluntary basis to purchase shares of our common stock directly from us. Under the ESPP, we sell shares to participants at a price equal to the lesser of 85% of the fair market value of our common stock at the (i) beginning of a six-month offering period, or (ii) end of the six-month offering period. The ESPP provides for two six-month offering periods each year; the first offering period begins on the first trading day on or after each November 1; the second offering period begins on the first trading day on or after each May 1. During the nine months ended January 31, 2016, 352,164 shares of our common stock were purchased under the ESPP at a purchase price of $0.95 per share.

Share-Based Compensation

Total share-based compensation expense is included in the accompanying unaudited condensed consolidated statements of operations as follows:

	Three Months Ended January 31,				Nine Months Ended January 31,
	2016		2015		2016		2015
Cost of contract manufacturing	$	20,000	$	16,000	$	42,000	$	48,000
Research and development		580,000		685,000		1,620,000		2,288,000
Selling, general and administrative		683,000		915,000		2,078,000		2,944,000
Total	$	1,283,000	$	1,616,000	$	3,740,000	$	5,280,000

Share-based compensation from:
Stock options	$	1,208,000	$	1,561,000	$	3,555,000	$	5,086,000
ESPP		75,000		55,000		185,000		194,000
	$	1,283,000	$	1,616,000	$	3,740,000	$	5,280,000

As of January 31, 2016, the total estimated unrecognized compensation cost related to non-vested employee stock options was $3,802,000. This cost is expected to be recognized over a weighted average vesting period of 1.47 years based on current assumptions. In addition, as of January 31, 2016, the total estimated unrecognized compensation cost related to non-vested stock options granted to non-employees was $45,000 based on a January 31, 2016 measurement date. This cost is expected to be recognized over a weighted average vesting period of 0.62 years.

9. SEGMENT REPORTING

9 Months Ended

Jan. 31, 2016

Segment Reporting [Abstract]

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 focused on the treatment of cancer. Avid is engaged in providing contract manufacturing services for third-party customers on a fee-for-service basis while also supporting our clinical drug supply of bavituximab.

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 is summarized as follows:

	Three Months Ended January 31,						Nine Months Ended January 31,
	2016			2015			2016			2015
Contract manufacturing services revenue	$	6,672,000		$	5,677,000		$	25,574,000		$	17,436,000
Cost of contract manufacturing services		3,896,000			3,113,000			13,245,000			10,835,000

Gross profit		2,776,000			2,564,000			12,329,000			6,601,000

Revenue from products in research and development		37,000			–			329,000			37,000
Research and development expense		(15,156,000	)		(11,261,000	)		(43,264,000	)		(31,465,000	)
Selling, general and administrative expense		(4,524,000	)		(4,325,000	)		(13,839,000	)		(13,503,000	)
Other income (expense), net		20,000			28,000			677,000			107,000
Net loss	$	(16,847,000	)	$	(12,994,000	)	$	(43,768,000	)	$	(38,223,000	)

Revenue generated from our contract manufacturing services segment was derived from a limited number of customers. The percentages below represent revenue derived from each customer (and geographical location) as a percentage of total contract manufacturing services revenue:

	Geographic	Three Months Ended January 31,				Nine Months Ended January 31,
Customer	Location	2016		2015		2016		2015

Halozyme Therapeutics, Inc.	U.S.		64%		81%		68%		84%
Customer A	U.S.		27		7		28		3
Customer B	U.S.		2		4		1		10
Other customers	U.S./non-U.S.		7		8		3		3
Total			100%		100%		100%		100%

Revenue generated from our products in our research and development segment during the nine months ended January 31, 2016 was primarily related to license revenue recognized under certain agreements with an unrelated entity (Note 11).

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 consist of the following:

	January 31, 2016		April 30, 2015
Long-lived Assets, net:
Contract manufacturing services	$	22,288,000	$	12,800,000
Products in research and development		1,558,000		2,324,000
Total	$	23,846,000	$	15,124,000

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599

+ Details

10. COMMITMENTS AND CONTINGENCIES

9 Months Ended

Jan. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

In the ordinary course of business, we are at times subject to various legal proceedings and disputes. We make provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions 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 (the “District Court”) 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 the U.S. Court of Appeals for the Ninth Circuit with respect to the District Court’s order granting Defendants’ motion to dismiss. The U.S. Court of Appeals for the Ninth Circuit has scheduled oral argument for lead plaintiff’s appeal for May 4, 2016. 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. On December 1, 2015, the plaintiffs filed an amended and supplemental derivative/class action complaint. The amended complaint alleged 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 four fiscal years ended April 30, 2015, 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 four fiscal years ended April 30, 2015, of compensation to our non-employee directors. In addition, the complaint alleges that our 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, among other things, 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 four fiscal years ended April 30, 2015 and other monetary relief for our benefit. The defendants filed their answer to the amended complaint on February 19, 2016. We believe that the derivative/class action complaint, as amended, is 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, among other causes of action, breach of contract, negligence, negligence per se, constructive fraud and negligent misrepresentation arising from CSM’s performance of its contracted services. On September 8, 2015, we and CSM entered into a confidential settlement and release agreement to resolve all claims related to the complaint we filed on September 24, 2012 against CSM. Pursuant to the terms of the Settlement Agreement, (i) all claims asserted in the litigation by us were dismissed with prejudice, (ii) each of the parties to the litigation received a full release of all claims, of any nature whatsoever, whether known or unknown, and (iii) CSM paid to us the sum of $600,000, which amount is included in interest and other income in the accompanying unaudited condensed consolidated financial statements for the nine months ended January 31, 2016.

11. LICENSING AGREEMENTS

9 Months Ended

Jan. 31, 2016

Licensing Agreements

LICENSING AGREEMENTS

During May 2010, we entered into an assignment agreement and a license agreement (collectively, the “Agreements”) with an unrelated entity to develop our Tumor Necrosis Therapy technologies in certain Asia-Pacific Economic Cooperation countries. We determined, pursuant to the authoritative guidance for revenue recognition for multiple element arrangements applied as of the transaction date, to utilize the residual method to allocate the consideration received under the arrangement. Under the residual method, the amount of consideration allocated to all other elements in the arrangement (delivered and undelivered) equals the total arrangement consideration less the aggregate fair value of the undelivered elements with stand-alone fair value (i.e., manufacturing commitment services). During May 2015, all obligations and commitments associated with the undelivered elements (i.e., manufacturing commitment services) expired in accordance with the terms of the Agreements and therefore, we recognized revenue of $292,000, which amount is included in license revenue in the accompanying unaudited condensed consolidated financial statements for the nine months ended January 31, 2016.

12. SUBSEQUENT EVENTS

9 Months Ended

Jan. 31, 2016

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

Phase III SUNRISE Trial Update

On February 25, 2016, we announced that we were discontinuing the Phase III SUNRISE trial based on the recommendation of the study’s Independent Data Monitoring Committee (“IDMC”) following a pre-specified interim analysis performed after 33% of targeted overall events (patient deaths) in the study were reached. Results of the analysis demonstrated that the patients treated in the bavituximab plus docetaxel treatment arm did not show a sufficient improvement in overall survival as compared to the patients treated in the docetaxel plus placebo treatment arm to warrant continuation of the study. Patient enrollment has been discontinued and existing patients in the trial will be given the choice to continue chemotherapy and/or bavituximab, as appropriate. Clinical trial data from the study will continue to be collected until trial completion. As a result of this interim analysis, we have decided to place all of our bavituximab plus chemotherapy combination trials on hold until we have evaluated all available data from the Phase III SUNRISE trial in order to determine whether or not further clinical trials in combination with chemotherapy are warranted.

Series E Preferred Stock Dividend

On March 7, 2016, 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 January 1, 2016 through March 31, 2016. The cash dividend is payable on April 1, 2016 to holders of the Series E Preferred Stock of record on March 18, 2016.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Jan. 31, 2016

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Liquidity and Financial Condition

Liquidity and Financial Condition

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 at the time of purchase to be cash equivalents.

Concentrations of Credit Risk and Customer Base

Concentrations of Credit Risk and Customer Base

Revenue Recognition

Contract Manufacturing Revenue

License Revenue

The consideration relates solely to past performance; and

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 unaudited condensed consolidated financial statements.

Impairment

Impairment

Fair Value Measurements

Fair Value Measurements

Level 1 – Observable inputs, such as quoted prices in active markets for identical assets or liabilities.

Customer Deposits

Customer Deposits

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

Research and Development Expenses

Share-based Compensation

Share-based Compensation

Basic and Dilutive Net Loss Per Common Share

	Three Months Ended January 31,				Nine Months Ended January 31,
	2016		2015		2016		2015

Stock Options		2,012,239		3,209,716		2,189,915		4,067,214
ESPP		16,932		4,159		61,817		28,376
Total		2,029,171		3,213,875		2,251,732		4,095,590

	Three Months Ended January 31,				Nine Months Ended January 31,
	2016		2015		2016		2015

Stock Options		19,129,031		8,569,057		15,800,281		8,500,817
Warrants		273,280		273,280		273,280		273,280
Series E Preferred Stock		13,260,355		9,912,502		13,249,024		9,321,584
Total		32,662,666		18,754,839		29,322,585		18,095,681

Pending Adoption of Recent Accounting Pronouncements

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICY (Tables)

9 Months Ended

Jan. 31, 2016

Summary Of Significant Accounting Policy Tables

Schedule of antidilutive shares

	Three Months Ended January 31,				Nine Months Ended January 31,
	2016		2015		2016		2015

Stock Options		2,012,239		3,209,716		2,189,915		4,067,214
ESPP		16,932		4,159		61,817		28,376
Total		2,029,171		3,213,875		2,251,732		4,095,590

	Three Months Ended January 31,				Nine Months Ended January 31,
	2016		2015		2016		2015

Stock Options		19,129,031		8,569,057		15,800,281		8,500,817
Warrants		273,280		273,280		273,280		273,280
Series E Preferred Stock		13,260,355		9,912,502		13,249,024		9,321,584
Total		32,662,666		18,754,839		29,322,585		18,095,681

4. PROPERTY AND EQUIPMENT (Tables)

9 Months Ended

Jan. 31, 2016

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

	January 31, 2016			April 30, 2015
Leasehold improvements	$	18,946,000		$	1,538,000
Laboratory equipment		9,912,000			5,965,000
Furniture, fixtures, office equipment and software		3,984,000			3,991,000
Construction-in-progress		–			11,819,000
		32,842,000			23,313,000
Less accumulated depreciation and amortization		(8,996,000	)		(8,189,000	)
Property and equipment, net	$	23,846,000		$	15,124,000

5. INVENTORIES (Tables)

9 Months Ended

Jan. 31, 2016

Inventory Disclosure [Abstract]

Schedule of inventories

	January 31, 2016		April 30, 2015
Raw materials	$	7,202,000	$	3,821,000
Work-in-process		7,987,000		3,533,000
Total inventories	$	15,189,000	$	7,354,000

6. STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Jan. 31, 2016

Stockholders Equity Tables

Schedule of dividends declared

Declaration

Date

Dividend

Per Share

Annualized

Percentage

Rate

Liquidation

Preference

Accrual Period

Record

Date

Payment

Date

6/5/2015

$0.65625

10.50%

$25.00

4/1/2015 – 6/30/2015

6/19/2015

7/1/2015

9/8/2015

$0.65625

10.50%

$25.00

7/1/2015 – 9/30/2015

9/18/2015

10/1/2015

12/7/2015

$0.65625

10.50%

$25.00

10/1/2015 – 12/31/2015

12/18/2015

1/4/2016

7. EQUITY COMPENSATION PLANS (Tables)

9 Months Ended

Jan. 31, 2016

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

Schedule of stock option transaction activity

Stock Options	Shares		Weighted Average Exercisable Price
Outstanding, May 1, 2015	20,708,672		$ 1.54
Granted	3,878,509		$ 1.30
Exercised	(177,266	)	$ 0.79
Canceled or expired	(755,360	)	$ 1.82
Outstanding, January 31, 2016	23,654,555		$ 1.50

Share-based compensation expense

	Three Months Ended January 31,				Nine Months Ended January 31,
	2016		2015		2016		2015
Cost of contract manufacturing	$	20,000	$	16,000	$	42,000	$	48,000
Research and development		580,000		685,000		1,620,000		2,288,000
Selling, general and administrative		683,000		915,000		2,078,000		2,944,000
Total	$	1,283,000	$	1,616,000	$	3,740,000	$	5,280,000

Share-based compensation from:
Stock options	$	1,208,000	$	1,561,000	$	3,555,000	$	5,086,000
ESPP		75,000		55,000		185,000		194,000
	$	1,283,000	$	1,616,000	$	3,740,000	$	5,280,000

9. SEGMENT REPORTING (Tables)

9 Months Ended

Jan. 31, 2016

Segment Reporting [Abstract]

Segment information

	Three Months Ended January 31,						Nine Months Ended January 31,
	2016			2015			2016			2015
Contract manufacturing services revenue	$	6,672,000		$	5,677,000		$	25,574,000		$	17,436,000
Cost of contract manufacturing services		3,896,000			3,113,000			13,245,000			10,835,000

Gross profit		2,776,000			2,564,000			12,329,000			6,601,000

Revenue from products in research and development		37,000			–			329,000			37,000
Research and development expense		(15,156,000	)		(11,261,000	)		(43,264,000	)		(31,465,000	)
Selling, general and administrative expense		(4,524,000	)		(4,325,000	)		(13,839,000	)		(13,503,000	)
Other income (expense), net		20,000			28,000			677,000			107,000
Net loss	$	(16,847,000	)	$	(12,994,000	)	$	(43,768,000	)	$	(38,223,000	)

Customer Revenue

	Geographic	Three Months Ended January 31,				Nine Months Ended January 31,
Customer	Location	2016		2015		2016		2015

Halozyme Therapeutics, Inc.	U.S.		64%		81%		68%		84%
Customer A	U.S.		27		7		28		3
Customer B	U.S.		2		4		1		10
Other customers	U.S./non-U.S.		7		8		3		3
Total			100%		100%		100%		100%

Long-lived assets

	January 31, 2016		April 30, 2015
Long-lived Assets, net:
Contract manufacturing services	$	22,288,000	$	12,800,000
Products in research and development		1,558,000		2,324,000
Total	$	23,846,000	$	15,124,000

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Antidilutive shares) - shares	3 Months Ended		9 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
Stock Options [Member]
Antidilutive shares excluded from calculation of weighted average diluted shares outstanding	2,012,239	3,209,716	2,189,915	4,067,214
Stock Options [Member] \| If-Converted Method [Member]
Antidilutive shares excluded from calculation of weighted average diluted shares outstanding	19,129,031	8,569,057	15,800,281	8,500,817
ESPP [Member]
Antidilutive shares excluded from calculation of weighted average diluted shares outstanding	16,932	4,159	61,817	28,376
Options and ESPP Warrants [Member]
Antidilutive shares excluded from calculation of weighted average diluted shares outstanding	2,029,171	3,213,875	2,251,732	4,095,590
Warrants [Member] \| If-Converted Method [Member]
Antidilutive shares excluded from calculation of weighted average diluted shares outstanding	273,280	273,280	273,280	273,280
Series E Preferred Stock [Member] \| If-Converted Method [Member]
Antidilutive shares excluded from calculation of weighted average diluted shares outstanding	13,260,355	9,912,502	13,249,024	9,321,584
Options, Warrants and Series E Preferred Stock [Member] \| If-Converted Method [Member]
Antidilutive shares excluded from calculation of weighted average diluted shares outstanding	32,662,666	18,754,839	29,322,585	18,095,681

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	9 Months Ended
	Jan. 31, 2016	Apr. 30, 2015	Jan. 31, 2015	Apr. 30, 2014
Cash and cash equivalents	$ 67,470,000	$ 68,001,000	$ 55,238,000	$ 77,490,000
Accounts Receivable [Member]
Concentration percentage	95.00%
Common Stock [Member]
Gross proceeds from issuance of equity	$ 44,131,000
Amount remaining under shelf registration statements	$ 116,356,000

3. TRADE AND OTHER RECEIVABLES (Details) - USD ($)	Jan. 31, 2016	Apr. 30, 2015
Receivables [Abstract]
Trade receivables	$ 8,234,000	$ 3,423,000
Other receivables, net	365,000	390,000
Trade and other receivables, net	$ 8,599,000	$ 3,813,000

4. PROPERTY AND EQUIPMENT (Details) - USD ($)	Jan. 31, 2016	Apr. 30, 2015
Property, Plant and Equipment [Abstract]
Leasehold improvements	$ 18,946,000	$ 1,538,000
Laboratory equipment	9,912,000	5,965,000
Furniture, fixtures, office equipment and software	3,984,000	3,991,000
Construction-in-progress	0	11,819,000
Property, gross	32,842,000	23,313,000
Less accumulated depreciation and amortization	(8,996,000)	(8,189,000)
Property and equipment, net	$ 23,846,000	$ 15,124,000

5. INVENTORIES (Details) - USD ($)	Jan. 31, 2016	Apr. 30, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 7,202,000	$ 3,821,000
Work-in-process	7,987,000	3,533,000
Total inventories	$ 15,189,000	$ 7,354,000

6. STOCKHOLDERS' EQUITY (Details - Dividends declared)	9 Months Ended
6. STOCKHOLDERS' EQUITY (Details - Dividends declared)	Jan. 31, 2016 $ / shares
Declared 06-05-2015 [Member]
Declaration date	Jun. 05, 2015
Dividend per share	$ .65625
Annualized Percentage Rate	10.50%
Liquidation preference	$ 25.00
Accrual period	4/1/2015 - 6/30/2015
Record date	Jun. 19, 2015
Payment date	Jul. 01, 2015
Declared 09-08-2015 [Member]
Declaration date	Sep. 08, 2015
Dividend per share	$ .65625
Annualized Percentage Rate	10.50%
Liquidation preference	$ 25.00
Accrual period	7/1/2015-9/30/2015
Record date	Sep. 18, 2015
Payment date	Oct. 01, 2015
Declared 12-07-2015 [Member]
Declaration date	Dec. 07, 2015
Dividend per share	$ .65625
Annualized Percentage Rate	10.50%
Liquidation preference	$ 25.00
Accrual period	10/1/2015 - 12/31/2015
Record date	Dec. 18, 2015
Payment date	Jan. 04, 2016

6. STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)	9 Months Ended
6. STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)	Jan. 31, 2016	Jan. 31, 2015
Stock Incentive Plans [Member]
Shares reserved for future issuance	39,587,885
ESPP [Member]
Shares reserved for future issuance	2,090,892
Warrants [Member]
Shares reserved for future issuance	273,280
Common Stock [Member]
Proceeds from issuance of stock	$ 44,131,000
Commissions and other issuance costs	633,000	$ 193,000
Common Stock [Member] \| June 2014 AMI Sales Agreement [Member]
Remaining Aggregate Gross Proceeds Available Under Agreement	0
Proceeds from issuance of stock	$ 11,456,000
Shares issued, new	8,629,738
Commissions and other issuance costs	$ 311,000
Common Stock [Member] \| August 2015 AMI Sales Agreement [Member]
Remaining Aggregate Gross Proceeds Available Under Agreement	22,553,000
Proceeds from issuance of stock	$ 7,447,000
Shares issued, new	6,751,651
Commissions and other issuance costs	$ 190,000
Common Stock [Member] \| Equity Distribution Agreement [Member]
Remaining Aggregate Gross Proceeds Available Under Agreement	14,772,000
Proceeds from issuance of stock	$ 5,228,000
Shares issued, new	4,455,278
Commissions and other issuance costs	$ 131,000
Common Stock [Member] \| Common Stock Purchase Agreement [Member]
Proceeds from issuance of stock	$ 20,000,000
Shares issued, new	18,518,518
Commissions and other issuance costs	$ 1,000
Series E Preferred Stock [Member]
Shares reserved for future issuance	45,745,760
If converted, Series E Preferred stock holders would receive shares of common stock. Common shares to be issued	13,145,333
Each outstanding share that could be converted into common shares	29
Commissions and other issuance costs		$ 553,000
Series E Preferred Stock [Member] \| June 2014 Series E AMI Sales Agreement [Member]
Remaining Aggregate Gross Proceeds Available Under Agreement	$ 10,735,000
Gross proceeds from issuance of preferred stock	$ 60,000
Shares issued, new	2,676
Commissions and other issuance costs	$ 1,000

7. EQUITY COMPENSATION PLANS (Details - Option activity)	9 Months Ended
	Jan. 31, 2016 $ / shares shares
Number of Options
Number of Options Outstanding, Beginning \| shares	20,708,672
Number of Options Granted \| shares	3,878,509
Number of Options Exercised \| shares	(177,266)
Number of Options Cancelled or Expired \| shares	(755,360)
Number of Options Outstanding, Ending \| shares	23,654,555
Weighted Average Exercise Price
Weighted Average Exercise Price Outstanding, Beginning \| $ / shares	$ 1.54
Weighted Average Exercise Price Granted \| $ / shares	1.30
Weighted Average Exercise Price Exercised \| $ / shares	.79
Weighted Average Exercise Price Canceled \| $ / shares	1.82
Weighted Average Exercise Price Outstanding, Ending \| $ / shares	$ 1.50

7. EQUITY COMPENSATION PLANS (Details - Share based compensation) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
Share based compensation	$ 1,283,000	$ 1,616,000	$ 3,740,000	$ 5,280,000
Cost of contract manufacturing [Member]
Share based compensation	20,000	16,000	42,000	48,000
Research and development [Member]
Share based compensation	580,000	685,000	1,620,000	2,288,000
Selling, general and administrative [Member]
Share based compensation	683,000	915,000	2,078,000	2,944,000
Stock Options [Member]
Share based compensation	1,208,000	1,561,000	3,555,000	5,086,000
ESPP [Member]
Share based compensation	$ 75,000	$ 55,000	$ 185,000	$ 194,000

7. EQUITY COMPENSATION PLANS (Details Narrative)	9 Months Ended
7. EQUITY COMPENSATION PLANS (Details Narrative)	Jan. 31, 2016 USD ($) shares
Employees [Member]
Unrecognized compensation cost \| $	$ 3,802,000
Unrecognized cost amortization period	1 year 5 months 19 days
Non-Employees [Member]
Unrecognized compensation cost, nonemployees \| $	$ 45,000
Unrecognized cost amortization period for nonemployees	7 months 13 days
2010 ESPP [Member]
Shares authorized under plan	5,000,000
Shares available to purchase	2,090,892
Shares purchased under ESPP	352,164
Stock Incentive Plans [Member]
Shares reserved for future issuance	39,587,885
Stock Options [Member]
Shares reserved for future issuance	23,654,555
Share-based awards [Member]
Shares reserved for future issuance	15,933,330

8. WARRANTS (Details Narrative)	3 Months Ended	9 Months Ended
8. WARRANTS (Details Narrative)	Jan. 31, 2016 $ / shares shares	Jan. 31, 2016 $ / shares shares
Warrants and Rights Note Disclosure [Abstract]
Warrants issued	0	0
Warrants exercised	0	0
Warrants outstanding	273,280	273,280
Warrant exercise price \| $ / shares	$ 2.47	$ 2.47
Warrants exercisable expiration date		Aug. 30, 2018

9. SEGMENT REPORTING (Details) - USD ($)	3 Months Ended		9 Months Ended
9. SEGMENT REPORTING (Details) - USD ($)	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
Segment Reporting [Abstract]
Contract manufacturing services revenue	$ 6,672,000	$ 5,677,000	$ 25,574,000	$ 17,436,000
Cost of contract manufacturing services	3,896,000	3,113,000	13,245,000	10,835,000
Gross profit	2,776,000	2,564,000	12,329,000	6,601,000
Revenue from products in research and development	37,000	0	329,000	37,000
Research and development expense	(15,156,000)	(11,261,000)	(43,264,000)	(31,465,000)
Selling, general and administrative expense	(4,524,000)	(4,325,000)	(13,839,000)	(13,503,000)
Other income (expense), net	20,000	28,000	677,000	107,000
Net loss	$ (16,847,000)	$ (12,994,000)	$ (43,768,000)	$ (38,223,000)

- Definition

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

+ References + Details

9. SEGMENT REPORTING (Details - Percentage breakdown) - Sales Revenue, Net [Member]	3 Months Ended		9 Months Ended
	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
Customer revenue as a percentage of revenue	100.00%	100.00%	100.00%	100.00%
Halozyme Therapeutics [Member]
Customer revenue as a percentage of revenue	64.00%	81.00%	68.00%	84.00%
Customer A [Member]
Customer revenue as a percentage of revenue	27.00%	7.00%	28.00%	3.00%
Customer B [Member]
Customer revenue as a percentage of revenue	2.00%	4.00%	1.00%	10.00%
Other Customers [Member]
Customer revenue as a percentage of revenue	7.00%	8.00%	3.00%	3.00%

9. SEGMENT REPORTING (Details - Long lived assets) - USD ($)	Jan. 31, 2016	Apr. 30, 2015
Long-lived assets	$ 23,846,000	$ 15,124,000
Contract Manufacturing Services [Member]
Long-lived assets	22,288,000	12,800,000
Products in research and development [Member]
Long-lived assets	$ 1,558,000	$ 2,324,000

11. LICENSING AGREEMENTS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
11. LICENSING AGREEMENTS (Details Narrative) - USD ($)	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
License revenue recognized	$ 37,000	$ 0	$ 329,000	$ 37,000
Agreements [Member]
License revenue recognized			$ 292,000

12. SUBSEQUENT EVENTS (Details Narrative)	1 Months Ended
12. SUBSEQUENT EVENTS (Details Narrative)	Mar. 07, 2016 $ / shares
Series E Preferred Stock [Member]
Dividend declared	$ .65625

3. TRADE AND OTHER RECEIVABLES (Details Narrative) - USD ($)	Jan. 31, 2016	Apr. 30, 2015
Receivables [Abstract]
Allowance for doubtful accounts	$ 0	$ 5,000

4. PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
4. PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	Jan. 31, 2016	Jan. 31, 2015	Jan. 31, 2016	Jan. 31, 2015
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 464,000	$ 261,000	$ 921,000	$ 803,000