SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

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

Liquidity and Financial Condition - At April 30, 2016, we had $61,412,000 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 for at least the next two fiscal years before we believe we can generate sufficient revenue from Avid’s contract manufacturing services to achieve profitability. 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 for at least the next two fiscal years.

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 fiscal year 2016, we raised $45,872,000 in aggregate gross proceeds from the sale of shares of our common stock (Note 5). Subsequent to April 30, 2016 and through July 14, 2016, we raised an additional $2,169,000 in aggregate gross proceeds from the sale of shares of our common stock (Note 12). As of July 14, 2016, $112,445,000 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 and/or Series E Preferred Stock is subject to a number of risks and uncertainties, including but not limited to, negative economic conditions, adverse market conditions, adverse financial results, and negative research and development results.

Although it is difficult to predict all of our future liquidity requirements, we believe that our cash and cash equivalents as of April 30, 2016 combined with the additional proceeds raised subsequent to April 30, 2016 and through July 14, 2016, and the projected cash receipts from manufacturing services will be sufficient to fund our operations through at least the next twelve months, which estimate assumes we raise no additional capital from the capital markets or other potential sources.

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, which may include delaying the expansion of our contract manufacturing business. 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.

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

Restricted Cash - Under the terms of two separate operating leases related to our facilities, we are required to maintain, as collateral, letters of credit during the terms of such leases (Note 3). At April 30, 2016, restricted cash of $600,000, in aggregate, was pledged as collateral for the letters of credit.

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

	2016		2015
Trade receivables⁽¹⁾	$	2,494,000	$	3,423,000
Other receivables, net		365,000		390,000
Trade and other receivables, net	$	2,859,000	$	3,813,000

______________

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

Allowance for Doubtful Accounts - We continually monitor our allowance for doubtful accounts for all receivables. We apply judgment in assessing the ultimate realization of our receivables and we estimate an allowance for doubtful accounts based on various factors, such as, the aging of accounts receivable balances, historical experience, and the financial condition of our customers. Based on our analysis of our receivables as of April 30, 2016 and 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.

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

	2016		2015
Raw materials	$	10,911,000	$	3,821,000
Work-in-process		5,275,000		3,533,000
Total inventories	$	16,186,000	$	7,354,000

Property and Equipment, net - Property and equipment is recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related asset, generally ranging from three to ten years. Amortization of leasehold improvements is calculated using the straight-line method over the shorter of the estimated useful life of the asset or the remaining lease term. Construction-in-progress represents expenditures related to a new manufacturing facility we constructed to support the anticipated growth of our contract manufacturing business while also providing sufficient capacity to support our internal development efforts. The construction of the manufacturing facility was completed and placed into service during fiscal year 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 and depreciation was not recorded until the asset was placed into service.

Concentrations of Credit Risk and Customer Base - Financial instruments that potentially subject us to a significant concentration of credit risk consist of cash and cash equivalents, restricted cash and trade receivables. We maintain our cash and restricted cash balances primarily with one major commercial bank and our deposits held with the bank exceed the amount of government insurance limits provided on our deposits. We are exposed to credit risk in the event of default by the major commercial bank holding our cash and restricted cash balances to the extent of the cash and restricted cash amounts recorded on the accompanying consolidated balance sheet.

Our trade receivables from amounts billed for contract manufacturing services 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 98% of our trade receivables balance as of April 30, 2016 (Note 2) represents amounts due from four customers. Approximately 97% of our trade receivables balance as of April 30, 2015 (Note 2) represents amounts due from two customers.

In addition, contract manufacturing revenue generated by Avid has historically been derived from a small customer base (Note 10). These customers typically do not enter into long-term contracts because their need for drug supply depends on a variety of factors, including the drug’s stage of development, their financial resources, and, with respect to commercial drugs, demand for the drug in the market. Our future results of operations could be adversely affected if revenue from any one of our primary customers is significantly reduced or eliminated.

Comprehensive Loss - Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive loss is equal to our net loss for all periods presented.

Impairment - Long-lived assets are reviewed for impairment in accordance with authoritative guidance for impairment or disposal of long-lived assets. Long-lived assets are reviewed for events or changes in circumstances, which indicate that their carrying value may not be recoverable. Long-lived assets are reported at the lower of carrying amount or fair value less cost to sell. For the fiscal years ended April 30, 2016 and 2015, there was no impairment of the value of our long-lived assets.

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

Fair Value Measurements - Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance prioritizes the inputs used in measuring fair value into the following hierarchy:

	·	Level 1 – Observable inputs, such as unadjusted quoted prices in active markets for identical assets or liabilities.
	·	Level 2 – Observable inputs other than quoted prices included in Level 1, such as assets or liabilities whose values are based on quoted market prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets.
	·	Level 3 – Unobservable inputs that are supported by little or no market activity and significant to the overall fair value measurement of the assets or liabilities; therefore, requiring the company to develop its own valuation techniques and assumptions.

As of April 30, 2016 and 2015, we do not have any Level 2 or Level 3 financial assets or liabilities and our cash equivalents, which are primarily invested in money market funds with one major commercial bank, are carried at fair value based on quoted market prices for identical securities (Level 1 input).

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

Deferred Rent - Rent expense is recorded on a straight-line basis over the initial term of our operating lease agreements and the difference between rent expense and the amounts paid is recorded as a deferred rent liability. Incentives granted under our operating leases, including tenant improvements and landlord-funded lease incentives, are recorded as a deferred rent liability, which is amortized as a reduction to rent expense over the term of the operating lease (Note 3).

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

We recognize revenue in accordance with the authoritative guidance for revenue recognition 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 or customer deposits in the accompanying consolidated financial statements. We also record a provision for estimated contract losses, if any, in the period in which they are determined.

License Revenue

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 consolidated financial statements.

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

Clinical trial costs are a significant component of our research and development expenses. We have a history of contracting with third parties that perform various clinical trial activities on our behalf in the ongoing development of our product candidates. The financial terms of these contracts are subject to negotiations and may vary from contract to contract and may result in uneven payment flow. Expenses related to clinical trials are accrued based on our estimates and/or representations from third parties (including clinical research organizations) regarding services performed. If the contracted amounts are modified (for instance, as a result of changes in the clinical trial protocol or scope of work to be performed), we modify our accruals accordingly on a prospective basis. Revisions in the scope of a contract are charged to expense in the period in which the facts that give rise to the revision become reasonably certain. There were no material adjustments for a change in estimate to research and development expenses in the accompanying consolidated financial statements in any of the three years ended April 30, 2016.

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

In addition, under certain in-licensing agreements associated with the research and development of our product candidates, we are obligated to pay certain milestone payments based on potential clinical development and regulatory milestones (Note 4). 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. As of April 30, 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 recalculated at the end of each reporting period based upon the fair market value on that date until the share-based award has vested, and any cumulative catch-up adjustment to share-based compensation resulting from the re-measurement is recognized in the current period (Note 6).

Income Taxes - We utilize the liability method of accounting for income taxes in accordance with authoritative guidance for accounting for income taxes. Under the liability method, deferred taxes are determined based on the differences between the consolidated financial statements and tax basis of assets and liabilities using enacted tax rates. A valuation allowance is provided when it is more likely than not that some portion or the entire deferred tax asset will not be realized (Note 8). In addition, we recognize the impact of an uncertain tax position only when it is more likely than not the tax position will be sustained upon examination by the tax authorities. We are also required to file federal, state and foreign income tax returns in various jurisdictions. The preparation of these returns requires us to interpret the applicable tax laws in effect in such jurisdictions, which could affect the amount paid by us.

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 years ended April 30, 2016.

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

	2016		2015		2014
Stock options		1,764,684		3,833,193		4,576,112
ESPP		265,029		46,992		72,896
Warrants		–		–		3,802
Total		2,029,713		3,880,185		4,652,810

The calculation of weighted average diluted shares outstanding 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 as of April 30,:

	2016		2015		2014
Stock options		19,186,454		8,471,005		5,151,523
Warrants		273,280		273,280		273,280
Series E Preferred Stock		13,251,849		9,879,531		1,253,452
Total		32,711,583		18,623,816		6,678,255

Subsequent to April 30, 2016 and through July 14, 2016, we granted an aggregate of 6,412,057 stock options under a broad based annual grant for fiscal year 2017 (Note 12) and sold an aggregate of 4,526,236 shares of our common stock (Note 12), which are not included in the calculation of basic and dilutive net loss per common share for the year ended April 30, 2016.

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 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 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.

In March 2016, FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718). ASU No. 2016-09 changes certain aspects of accounting for share-based payments to employees and involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Specifically, ASU No. 2016-09 requires that all income tax effects of share-based awards be recognized as income tax expense or benefit in the reporting period in which they occur. Additionally, ASU No. 2016-09 amends existing guidance to allow forfeitures of share-based awards to be recognized as they occur. Previous guidance required that share-based compensation expense include an estimate of forfeitures. ASU No. 2016-09 is effective for annual and interim periods beginning after December 15, 2016, which will be our fiscal year beginning May 1, 2017. Early adoption is permitted. We are currently evaluating the impact the adoption of ASU No. 2016-09 will have on our consolidated financial statements and related disclosures.

3. COMMITMENTS AND CONTINGENCIES

12 Months Ended

Apr. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Operating Leases – Our corporate offices, research and development, and manufacturing facilities are all located in close proximity in Tustin, California. We currently lease an aggregate of approximately 152,000 square feet of office, warehouse, research and manufacturing space in six buildings under five separate lease agreements, as summarized in the following table:

Lease Execution Date	Approximate Square Footage Leased	# of Buildings Occupied	Initial Lease Term Expiration Date	# of Options to Extend Lease	Extended Lease Term Expiration Date⁽¹⁾
December 1998	48,000	2	12/31/17	2	12/31/27
May 2010	13,000	1	12/31/17	1	12/31/22
July 2014	40,000	1	7/31/21	2	7/31/31
April 2016	26,000	1	8/31/23	2	8/31/35
April 2016	25,000	1	8/31/23	2	8/31/35

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⁽¹⁾

Extended lease term expiration date assumes we execute all available option(s) to extend lease in accordance with the terms of the lease agreement.

The following represents additional information for each of the lease agreements included in the above table:

In December 1998, we entered into our first lease agreement (the “First Lease”) with an original lease term of 12 years with two 5-year renewal options and includes scheduled rental increases of approximately 3% every two years. In December 2005, we entered into an amendment with the landlord and extended the original lease term for seven additional years to expire on December 31, 2017, while maintaining our two 5-year renewal options that could extend our lease to December 31, 2027.

In May 2010, we entered into a second lease agreement (the “Second Lease”) to lease additional office and research space. The Second Lease includes a 5-year option to extend the lease to December 31, 2022 and includes annual scheduled rental increases of $0.05 per square foot per year. The Second Lease included a tenant improvement allowance of $125,000 which we classified as deferred rent and is being amortized on a straight-line basis over the term of the Second Lease as a reduction to rent expense. Tenant improvements associated with the Second Lease were recorded as leasehold improvements and are being amortized over the shorter of the estimated useful life of the improvements or the remaining life of the Second Lease.

In July 2014, we entered into a third lease agreement (the “Third Lease”) to lease vacant warehouse space to expand our manufacturing capacity to support the manufacturing of products in late-stage clinical development to commercial. The Third Lease includes an option to extend the lease term in two 5-year periods to extend the lease to July 31, 2031 and includes scheduled annual rent increases of approximately 3%. In addition, the Third Lease provided for 12.5 months of free rent, lessor improvements of $250,000 and a tenant improvement allowance of $365,000. The lessor improvements and tenant improvement allowance were classified as deferred rent and are being amortized on a straight-line basis over the term of the Third Lease as a reduction to rent expense. In addition, upon completion of the manufacturing facility build-out during fiscal year 2016, certain of these improvements were classified as leasehold improvements and are being amortized over the shorter of the estimated useful life of the improvements or the remaining life of the Third Lease.

In April 2016, we entered into a fourth lease agreement (the “Fourth Lease”) to lease additional office space. The Fourth Lease includes two separate option periods to extend the lease term to August 31, 2035 and includes annual scheduled rent increases of approximately 3%. In addition, the Fourth Lease provides for four months of free rent and a tenant improvement allowance of $562,000. The tenant improvement allowance was classified as deferred rent and will be amortized on a straight-line basis over the term of the Fourth Lease as a reduction to rent expense. In addition, tenant improvements classified as leasehold improvements will be amortized over the shorter of the estimated useful life of the improvements or the remaining life of the Fourth Lease. Additionally, under the terms of the Fourth Lease, we are required to maintain, as collateral for the lease, a letter of credit in the amount of $350,000 during the entire term of the Fourth Lease, which amount is included in restricted cash in the accompanying consolidated balance sheets.

In April 2016, we entered into a fifth lease agreement (the “Fifth Lease”) to expand our current manufacturing capacity to support clinical manufacturing and other ancillary services. The Fifth Lease includes two separate option periods to extend the lease term to August 31, 2035 and includes annual scheduled rent increases of approximately 3%. In addition, under the terms of the Fifth Lease, we are required to maintain, as collateral for the lease, a letter of credit in the amount of $250,000 during the entire term of the Fifth Lease, which amount is included in restricted cash in the accompanying consolidated balance sheets.

Under each of the aforementioned facility operating leases, we record rent expense on a straight-line basis over the initial term of the lease. The difference between rent expense and the amounts paid under the operating leases is recorded as a deferred rent liability in the accompanying consolidated financial statements. Annual rent expense under the aforementioned facility operating lease agreements totaled $1,265,000, $1,197,000, and $938,000 for the fiscal years ended April 30, 2016, 2015, and 2014, respectively.

At April 30, 2016, future minimum lease payments under all non-cancelable operating leases are as follows:

Year ending April 30,:		Minimum Lease Payments
	2017	$	2,006,000
	2018		1,976,000
	2019		1,283,000
	2020		1,272,000
	2021		1,309,000
	Thereafter		2,065,000
		$	9,911,000

Legal Proceedings - In the ordinary course of business, we are at times subject to various legal proceedings and disputes. We make provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions are reviewed at least quarterly and adjusted, if necessary, 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.

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 District 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 District Court issued two separate orders granting the Defendants’ two separate motions to dismiss, on May 1, 2014, the District Court issued a third order granting Defendants’ motion to dismiss the plaintiff’s second 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. Oral argument for lead plaintiff’s appeal was conducted on May 4, 2016, before the U.S. Court of Appeals for the Ninth Circuit. On June 8, 2016, the U.S. Court of Appeals for the Ninth Circuit issued its order affirming the District Court’s order granting the Defendant’s motion to dismiss with prejudice.

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 District Court 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. On May 31, 2013, the District Court issued an order staying the case pending a resolution of the Defendants’ motion to dismiss the Securities Class Action. On June 24, 2013, the District Court 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. As a result of the U.S. Court of Appeals for the Ninth Circuit having affirmed the District Court’s dismissal of the Securities Class Action, we do not expect the plaintiff to file a motion with the District Court to reopen this matter.

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 and class action complaint (the “Amended 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, rescission 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 Amended Complaint is without merit and intend to vigorously defend the action. In addition, due to the early stage of this matter, we cannot reasonably estimate the possible loss or range of loss, if any, that may result from this matter.

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 District Court. 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 consolidated statements of operations and comprehensive loss for the fiscal year ended April 30, 2016.

4. LICENSING AGREEMENTS

12 Months Ended

Apr. 30, 2016

Licensing Agreements

LICENSING AGREEMENTS

In-licensing Agreements

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

Bavituximab

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

Under our in-licensing agreements relating to bavituximab, we are obligated to pay future milestone payments based on potential clinical development and regulatory milestones, plus a royalty on net sales and/or a percentage of sublicense income. The applicable royalty rate under each of the foregoing in-licensing agreements is in the low single digits. During fiscal year 2014, we expensed $125,000 associated with milestone obligations under in-licensing agreements covering bavituximab, which is included in research and development expense in the accompanying consolidated statements of operations and comprehensive loss. We did not incur any milestone related expenses during fiscal years 2016 and 2015.

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

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

______________

(1)

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

(2)

In the event we utilize a third-party contract manufacturer other than Lonza to manufacture bavituximab for commercial purposes, we would owe Lonza 300,000 pounds sterling per year.

We do not expect to incur any milestone related expenses regarding our bavituximab program during fiscal year 2017. In addition, of the total potential future milestone obligations of $6,675,000, up to $6,400,000 would be due upon the first commercial approval of bavituximab pursuant to these in-licensing agreements. However, given the uncertainty of the drug development and the regulatory approval process, we are unable to predict with any certainty when any of these future milestones will occur, if at all.

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

In July 2009, we entered into a patent assignment and sublicense with Affitech whereby we out-licensed exclusive worldwide rights to develop and commercialize certain products under our anti-vascular endothelial growth factor (“VEGF”) intellectual property portfolio as further described in the “Out-Licensing Collaborations” section below. The underlying technology licensed to Affitech was in-licensed from UTSWMC in August 2001 under an exclusive worldwide license agreement. Under the UTSWMC license agreement, as amended, our aggregate future milestone obligations are $375,000 assuming the achievement of all development milestones by Affitech. During fiscal year 2016, we expensed $75,000 associated with milestone obligations under the UTSWMC license agreement, which is included in research and development expense in the accompanying consolidated statements of operations and comprehensive loss. We did not incur any milestone related expenses during fiscal years 2015 and 2014. In addition, we do not expect to incur any milestone related expenses under the UTSWMC license agreement during fiscal year 2017.

Out-Licensing Agreements

The following represents a summary of our out-licensing agreements by technology platform:

Tumor Necrosis Therapy

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

In 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). In 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 consolidated statements of operations and comprehensive loss for the fiscal year ended April 30, 2016.

Anti-VEGF

In July 2009, we entered into a patent assignment and sublicense (collectively, the “Affitech Agreements”) with Affitech whereby we licensed exclusive worldwide rights to develop and commercialize certain products under our anti-VEGF intellectual property portfolio, including the fully human antibody AT001/r84. In consideration for the rights granted under our anti-VEGF antibody technology platform, we received non-refundable up-front license fees of $250,000. In addition, we received aggregate milestone payments of $1,000,000 associated with the delivery of two preclinical development packages as defined in the Affitech Agreements. We could also receive up to $16,500,000 in future milestone payments based on the achievement of all clinical and regulatory milestones for product approval by Affitech or an affiliate, plus a royalty on net sales, as defined in the Affitech Agreements. These potential future milestone payments payable under the Affitech Agreements entail no performance obligations on our part. Therefore, we expect to recognize revenue on the future potential milestone payments, if any, in accordance with the applicable authoritative guidance for revenue recognition, either when the milestone is achieved, if our future obligations are considered inconsequential, or recognized as revenue on a straight-line basis over a performance obligation period, if continued performance or future obligations exist. To date, no clinical or regulatory milestones as defined in the Affitech Agreements have been achieved by Affitech or an affiliate. In addition, in the event Affitech enters into a sublicense agreement with a non-affiliate for the anti-VEGF technology platform, we shall receive a percentage of all payments received under any such sublicenses, which percentage is determined based on the clinical development stage of the technology platform at the time of any such sublicenses. In accordance with the authoritative guidance for revenue recognition as of the transaction date, the license includes multiple elements that are not separable and, accordingly, were accounted for as a single unit of accounting. In addition, we determined that our obligations would be up to a four-year period and therefore, we recognized the non-refundable up-front license fees of $250,000 and the additional $1,000,000 associated with other deliverables, as defined in the Affitech Agreements, on a straight-line basis over a four-year period through July 2013. We recognized revenue of $37,000, $37,000 and $107,000 during fiscal years 2016, 2015 and 2014, respectively, under the Affitech Agreements, which amounts are included in license revenue in the accompanying consolidated financial statements.

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

5. STOCKHOLDERS' EQUITY

12 Months Ended

Apr. 30, 2016

Equity [Abstract]

STOCKHOLDERS' EQUITY

Stockholder Rights Agreement

On March 16, 2006, our Board of Directors adopted a Stockholder Rights Agreement, which was amended and restated on March 16, 2016 (the “Rights Agreement”), that is designed to strengthen the ability of the Board of Directors to protect the interests of our stockholders against potential abusive or coercive takeover tactics and to enable all stockholders the full and fair value of their investment in the event that an unsolicited attempt is made to acquire Peregrine. The Rights Agreement is not intended to prevent an offer the Board of Directors concludes is in the best interest of Peregrine and its stockholders.

Under the Rights Agreement, the Board of Directors declared a dividend of one preferred share purchase right (a “Right”) for each share of our common stock held by shareholders of record as of the close of business on March 27, 2006. Each Right entitles holders of each share of our common stock to buy one thousandth (1/1,000th) of a share of Peregrine’s Series D Participating Preferred Stock, par value $0.001 per share, at an exercise price of $11.00 per share, subject to adjustment. The Rights are neither exercisable nor traded separately from our common stock. The Rights will become exercisable and will detach from the common shares if a person or group acquires 15% or more of our outstanding common stock, without prior approval from our Board of Directors, or announces a tender or exchange offer that would result in that person or group owning 15% or more of our common stock. Each Right, when exercised, entitles the holder (other than the acquiring person or group) to receive our common stock (or in certain circumstances, voting securities of the acquiring person or group) with a value of twice the Rights’ exercise price upon payment of the exercise price of the Rights.

Peregrine will be entitled to redeem the Rights at $0.001 per Right at any time prior to a person or group achieving the 15% threshold. The Rights will expire on March 16, 2021.

Sales of Common Stock and Preferred Stock

Our ability to continue 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, issuing additional equity.

Sale of Common Stock

During the three fiscal years ended April 30, 2016, we issued shares of our common stock under various financing transactions, as summarized in the following table:

Description of Financing Transaction	Number of Common Stock Shares Issued		Gross Proceeds Raised
Fiscal Year 2014
At Market Issuance Sales Agreement dated December 27, 2012		33,527,369	$	55,424,000
Fiscal Year 2015
At Market Issuance Sales Agreement dated December 27, 2012		3,983,360	$	6,204,000
At Market Issuance Sales Agreement dated June 13, 2014		9,681,757	$	13,544,000
		13,665,117	$	19,748,000
Fiscal Year 2016
At Market Issuance Sales Agreement dated June 13, 2014		8,629,738	$	11,456,000
At Market Issuance Sales Agreement dated August 7, 2015		6,751,651	$	7,447,000
Equity Distribution Agreement dated August 7, 2015		8,472,288	$	6,969,000
Common Stock Purchase Agreement dated October 30, 2015		18,518,518	$	20,000,000
		42,372,195	$	45,872,000

The following represents additional information for each of the financing transactions included in the above table:

December 2012 AMI Sales Agreement – On December 27, 2012, we entered into an At Market Issuance Sales Agreement (“December 2012 AMI Sales Agreement”) with MLV & Co. LLC (“MLV”), pursuant to which we were able to sell shares of our common stock through MLV, as agent, for aggregate gross proceeds of up to $75,000,000, in registered transactions from our shelf registration statement on Form S-3 (File No. 333-180028), which was declared effective by the Securities and Exchange Commission (“SEC”) on April 12, 2012. Sales of our common stock through MLV were made by any method that was deemed an “at the market offering” as defined in Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”). We paid MLV a commission equal to 2.5% of the gross proceeds from the sale of our common stock pursuant to the December 2012 AMI Sales Agreement. As of April 30, 2015, we had raised the full amount of gross proceeds available to us under the December 2012 AMI Sales Agreement.

June 2014 AMI Sales Agreement – On June 13, 2014, we entered into an At Market Issuance Sales Agreement with MLV, as amended on April 13, 2015 (“June 2014 AMI Sales Agreement”), pursuant to which we were able to 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 were made by any method that was deemed an “at the market offering” as defined in Rule 415 of the Securities Act. We paid 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. As of April 30, 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. As of April 30, 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. As of April 30, 2016, aggregate gross proceeds of up to $13,031,000 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.

Sale of Preferred Stock

During the three fiscal years ended April 30, 2016, we issued shares of our preferred stock under various financing transactions, as summarized in the following table:

Description of Financing Transaction	Number of Preferred Stock Shares Issued		Gross Proceeds Raised
Fiscal Year 2014
Initial Public Offering dated February 11, 2014		775,000	$	19,375,000
Fiscal Year 2015
At Market Issuance Sales Agreement dated June 13, 2014		799,764	$	19,205,000
Fiscal Year 2016
At Market Issuance Sales Agreement dated June 13, 2014		2,676	$	60,000

The following represents additional information for each of the financing transactions included in the above table:

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

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

The Offering was made pursuant to a prospectus supplement filed with the SEC on February 12, 2014 to our shelf registration statement on Form S-3 (File No. 333-193113) which was declared effective by the SEC on January 16, 2014 (“January 2014 Shelf”).

June 2014 Series E AMI 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 January 2014 Shelf. Sales of our Series E Preferred 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 Series E AMI Sales Agreement. During fiscal year 2015, we sold 799,764 shares of our Series E Preferred Stock at market prices under the Series E AMI Sales Agreement for aggregate gross proceeds of $19,205,000 before deducting commissions and other issuance costs of $1,002,000. During fiscal year 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 April 30, 2016, aggregate gross proceeds of up to $10,735,000 remained available under the Series E AMI Sales Agreement.

Series E Preferred Stock Rights and Preferences

On February 12, 2014, we filed with the Secretary of State of the State of Delaware a Certificate of Designations of Rights and Preferences (the “Certificate of Designations”) to designate the Series E Preferred Stock. The Certificate of Designations designated 2,000,000 shares of Series E Preferred Stock out of our 5,000,000 shares of authorized but unissued shares of preferred stock. In addition, the Series E Preferred Stock is classified as permanent equity in accordance with FASB Accounting Standards Codification Topic 480, Distinguishing Liabilities from Equity. 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^stday of each of January, April, July, and October;

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

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

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

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

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

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

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

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

Series E Preferred Stock Dividends

The following table summarizes the Series E Preferred Stock dividend activity during the three fiscal years ended April 30, 2016:

Declaration

Date

Dividend

Per Share

Annualized

Percentage

Rate

Liquidation

Preference

Accrual

Period

Record

Date

Payment

Date

Fiscal year 2014

3/11/2014

$0.29890⁽¹⁾

10.50%

$25.00

2/19/2014 – 3/31/2014

3/21/2014

4/1/2014

Fiscal year 2015

6/10/2014

$0.65625

10.50%

$25.00

4/1/2014 – 6/30/2014

6/20/2014

7/1/2014

9/8/2014

$0.65625

10.50%

$25.00

7/1/2014 – 9/30/2014

9/19/2014

10/1/2014

12/9/2014

$0.65625

10.50%

$25.00

10/1/2014 – 12/31/2014

12/19/2014

1/2/2015

3/10/2015

$0.65625

10.50%

$25.00

1/1/2015 – 3/31/2015

3/20/2015

4/1/2015

Fiscal year 2016

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

3/7/2016

$0.65625

10.50%

$25.00

1/1/2016 – 3/31/2016

3/18/2016

4/1/2016

______________

⁽¹⁾

Dividend per share was pro-rated for the initial accrual period starting February 19, 2014.

Shares of Common Stock Authorized and Reserved For Future Issuance

We are authorized to issue up to 500,000,000 shares of our common stock. As of April 30, 2016, 236,930,485 shares of our common stock were issued and outstanding. In addition, our common stock outstanding as of April 30, 2016 excluded the following shares of common stock reserved for future issuance:

	·	39,561,165 shares of common stock reserved for issuance under outstanding option grants and available for issuance under our stock incentive plans;
	·	1,408,659 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 our 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 our common stock, representing the Share Cap.

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

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

+ References

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+ Details

6. EQUITY COMPENSATION PLANS

12 Months Ended

Apr. 30, 2016

7. EQUITY COMPENSATION PLANS

Stock Incentive Plans

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

As of April 30, 2016, we had an aggregate of 39,561,165 shares of our common stock reserved for issuance under the Stock Plans, of which, 23,751,261 shares were subject to outstanding options and 15,809,904 shares were available for future grants of share-based awards.

Stock Options – Stock options granted under our Stock Plans are granted at an exercise price not less than the fair market value of our common stock on the date of grant. The options generally vest over a two to four year period and expire ten years from the date of grant, if unexercised. However, certain option awards provide for accelerated vesting if there is a change in control (as defined in the Stock Plans).

The estimated fair value of stock options are measured at the grant date, using a fair value based method, such as a Black-Scholes option valuation model, and is amortized as compensation expense on a straight-line basis over the requisite service period of the award, which is generally the vesting period. The use of a valuation model requires us to make certain estimates and assumptions with respect to selected model inputs. The expected volatility is based on the daily historical volatility of our common stock covering the estimated expected term. The expected term of options granted reflects actual historical exercise activity and assumptions regarding future exercise activity of unexercised, outstanding options. The risk-free interest rate is based on U.S. Treasury notes with terms within the contractual life of the option at the time of grant. The expected dividend yield assumption is based on our expectation of future dividend payouts. We have never declared or paid any cash dividends on our common stock and currently do not anticipate paying such cash dividends. In addition, guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The fair value of stock options on the date of grant and the weighted-average assumptions used to estimate the fair value of the stock options using the Black-Scholes option valuation model for fiscal years ended April 30, 2016, 2015 and 2014, were as follows:

	Year Ended April 30,
	2016		2015		2014
Risk-free interest rate		1.66%		1.95%		1.32%
Expected life (in years)		5.96		5.74		5.84
Expected volatility		104.74%		111.78%		113.92%
Expected dividend yield		–		–		–

The following summarizes our stock option transaction activity for fiscal year ended April 30, 2016:

Stock Options	Shares			Weighted Average Exercisable Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ⁽¹⁾
Outstanding, May 1, 2015		20,708,672			$1.54
Granted		4,173,260			$1.26
Exercised		(177,266	)		$0.79
Canceled or expired		(953,405	)		$1.87
Outstanding, April 30, 2016		23,751,261			$1.48		6.68	$	–

Exercisable and expected to vest		23,652,443			$1.48		6.67	$	–
Exercisable, April 30, 2016		20,153,764			$1.51		6.31	$	–

______________

⁽¹⁾

Aggregate intrinsic value represents the difference between the exercise price of an option and the closing market price of our common stock on April 29, 2016 (the last trading day of fiscal year 2016), which was $0.3541 per share.

The weighted-average grant date fair value of options granted to employees during the fiscal years ended April 30, 2016, 2015 and 2014 was $1.01, $1.43 and $1.19 per share, respectively.

The aggregate intrinsic value of stock options exercised during the fiscal years ended April 30, 2016, 2015 and 2014 was $93,000, $192,000 and $908,000, respectively. Cash received from stock options exercised during fiscal years ended April 30, 2016, 2015 and 2014, totaled $138,000, $298,000 and $944,000, respectively, net of issuance costs of $1,000, $3,000 and $4,000, respectively.

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

As of April 30, 2016, the total estimated unrecognized compensation cost related to non-vested employee stock options was $2,829,000. This cost is expected to be recognized over a weighted average vesting period of 1.56 years based on current assumptions.

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

During fiscal year ended April 30, 2014, the weighted-average grant date fair value of restricted stock awards granted and vested was $1.39 per share with an aggregate fair value of $139,000. No restricted stock awards were granted or vested during fiscal years ended April 30, 2016 and 2015. As of April 30, 2016, there were no restricted stock awards outstanding, and accordingly, there was no remaining unrecognized compensation cost.

Employee Stock Purchase Plan

On October 21, 2010, our stockholders approved our 2010 Employee Stock Purchase Plan (the “ESPP”). The ESPP allows eligible employees on a voluntary basis to purchase shares of our common stock directly from 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.

A total of 5,000,000 shares are reserved for issuance under the ESPP, of which 1,408,659 shares remained available to purchase at April 30, 2016, and are subject to adjustment as provided in the ESPP for stock splits, stock dividends, recapitalizations and other similar events. During the fiscal years ended April 30, 2016, 2015 and 2014, 1,034,397, 497,453 and 498,050 shares of our common stock were purchased, respectively, under the ESPP at a weighted average purchase price per share of $0.52, $1.22 and $1.09, respectively.

The fair value of the shares purchased under the ESPP were determined using a Black-Scholes option pricing model (see explanation of valuation model inputs above under “Stock Options”), and is recognized as expense on a straight-line basis over the requisite service period (or six-month offering period). The weighted average grant date fair value of purchase rights under the ESPP during fiscal years ended April 30, 2016, 2015 and 2014 was $0.34, $0.56 and $0.55, respectively, based on the following Black-Scholes option valuation model inputs:

	Year Ended April 30,
	2016		2015		2014
Risk-free interest rate		0.18%		0.06%		0.08%
Expected life (in years)		0.50		0.50		0.50
Expected volatility		46.14%		63.54%		93.39%
Expected dividend yield		–		–		–

Share-based Compensation Expense

Total share-based compensation expense related to share-based awards issued under our equity compensation plans for the fiscal years ended April 30, 2016, 2015 and 2014 was comprised of the following:

	2016		2015		2014
Cost of contract manufacturing	$	41,000	$	59,000	$	68,000
Research and development		2,124,000		2,904,000		2,804,000
Selling, general and administrative		2,733,000		3,739,000		3,335,000
Total	$	4,898,000	$	6,702,000	$	6,207,000

Share-based compensation from:
Stock options	$	4,720,000	$	6,465,000	$	5,803,000
Restricted stock awards		–		–		139,000
ESPP		178,000		237,000		265,000
	$	4,898,000	$	6,702,000	$	6,207,000

Share-based compensation expense recorded during fiscal years ended April 30, 2016, 2015 and 2014 associated with share-based awards granted to non-employees amounted to $109,000, $289,000 and $391,000, respectively.

As of April 30, 2016, the total estimated unrecognized compensation cost related to non-vested stock options granted to non-employees was $9,000 based on an April 30, 2016 measurement date. This cost is expected to be recognized over a weighted average vesting period of 0.89 years.

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

Compensation and Retirement Disclosure [Abstract]

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

+ References + Details

8. INCOME TAXES

12 Months Ended

Apr. 30, 2016

Income Tax Disclosure [Abstract]

INCOME TAXES

We are primarily subject to U.S. federal and California state jurisdictions. To our knowledge, all tax years remain open to examination by U.S. federal and state authorities.

In addition, in accordance with authoritative guidance, we are required to recognize the impact of an uncertain tax position in the consolidated financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. An uncertain tax position will not be recognized if it has less than a 50% likelihood of being sustained upon examination by the tax authorities. We had no unrecognized tax benefits from uncertain tax positions as of April 30, 2016 and 2015. It is also our policy, in accordance with authoritative guidance, to recognize interest and penalties related to income tax matters in interest and other expense in our consolidated statements of operations and comprehensive loss. We did not recognize interest or penalties related to income taxes for fiscal years ended April 30, 2016, 2015, and 2014, and we did not accrue for interest or penalties as of April 30, 2016 and 2015.

At April 30, 2016, we had total deferred tax assets of $168,395,000. Due to uncertainties surrounding our ability to generate future taxable income to realize these tax assets, a full valuation has been established to offset our total deferred tax assets. Additionally, the future utilization of our net operating loss carry forwards to offset future taxable income may be subject to an annual limitation, pursuant to Internal Revenue Code Section 382, as a result of ownership changes that may have occurred previously or that could occur in the future. A Section 382 analysis was completed as of the fiscal year ended April 30, 2015 and it was determined that no change in ownership had occurred. Ownership changes occurring subsequent to April 30, 2015 may impact the utilization of net operating loss carry forwards and other tax attributes.

At April 30, 2016, we had federal net operating loss carry forwards of approximately $384,857,000. The net operating loss carry forwards expire in fiscal years 2019 through 2036. We also have state net operating loss carry forwards of approximately $276,535,000 at April 30, 2016, which begin to expire in fiscal year 2017. In addition, we have approximately $5,956,000 of net operating loss attributable to excess tax deductions on share-based compensation that when utilized, if any, the tax benefit will be booked to additional paid-in-capital.

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

	2016			2015			2014
Federal income taxes at statutory rate	$	(18,921,000	)	$	(17,122,000	)	$	(12,023,000	)
State income taxes		(4,824,000	)		(4,450,000	)		(3,124,000	)
Expiration and adjustments of deferred tax assets		1,580,000			1,790,000			2,751,000
Change in valuation allowance		21,871,000			19,532,000			12,153,000
Other, net		294,000			250,000			243,000
Income tax (expense) benefit	$	–		$	–		$	–

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Significant components of our deferred tax assets at April 30, 2016 and 2015 are as follows:

	2016			2015
Share-based compensation	$	8,806,000		$	7,119,000
Deferred revenue		4,296,000			2,840,000
Other		2,547,000			2,765,000
Net operating losses		152,746,000			133,800,000

Total deferred tax assets		168,395,000			146,524,000
Less valuation allowance		(168,395,000	)		(146,524,000	)

Net deferred tax assets	$	–		$	–

9. BENEFIT PLAN

12 Months Ended

Apr. 30, 2016

BENEFIT PLAN

During fiscal year 1997, we adopted a 401(k) benefit plan (the “Plan”) for all full-time employees who are at least the age of 21 and have three or more months of continuous service. The Plan provides for employee contributions of up to 100% of their compensation on a tax deferred basis up to the maximum amount permitted by the Internal Revenue Code. We are not required to make matching contributions under the Plan and we made no matching contributions to the Plan since its inception through December 2009. Effective January 2010, we voluntarily agreed to match 50% of employee contributions of up to the first 6% of a participant’s annual eligible compensation for all Plan contributions, subject to certain IRS limitations. In addition, we have the ability to make additional discretionary matching contributions as defined in the Plan amendment.

Under the Plan, each participating employee is fully vested in his or her contributions to the Plan and our contributions to the Plan will fully vest after six years of service. The expense related to our matching contributions to the Plan was $543,000, $454,000, and $300,000 for the fiscal years ended April 30, 2016, 2015, and 2014, respectively.

10. SEGMENT REPORTING

12 Months Ended

Apr. 30, 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 for 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 internal drug development efforts.

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

Segment information for the fiscal years ended April 30, 2016, 2015 and 2014 is summarized as follows:

	2016			2015			2014
Contract manufacturing services revenue	$	44,357,000		$	26,744,000		$	22,294,000
Cost of contract manufacturing services		22,966,000			15,593,000			13,110,000
Gross profit	$	21,391,000		$	11,151,000		$	9,184,000

Revenue from products in research and development	$	329,000		$	37,000		$	107,000
Research and development expense		(59,529,000	)		(42,996,000	)		(27,723,000	)
Selling, general and administrative expense		(18,551,000	)		(18,691,000	)		(17,274,000	)
Other income (expense), net		708,000			141,000			344,000
Net loss	$	(55,652,000	)	$	(50,358,000	)	$	(35,362,000	)

Revenue generated from our contract manufacturing services segment during fiscal years ended April 30, 2016, 2015 and 2014 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:

Customer	Geographic Location	2016		2015		2014
Halozyme Therapeutics, Inc.	U.S.		69%		79%		91%
Customer A	U.S.		26		12		–
Other customers	U.S./non-U.S.		5		9		9
Total			100%		100%		100%

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

		2016		2015		2014
U.S.		$	44,357,000	$	26,715,000	$	22,225,000
Non-U.S.			–		29,000		69,000
	Total	$	44,357,000	$	26,744,000	$	22,294,000

Revenue generated from our products in our research and development segment during fiscal years ended April 30, 2016, 2015 and 2014 were directly related to license revenue recognized under licensing agreements with unrelated entities (Note 4).

Our long-lived assets are located in the U.S. and consist of leasehold improvements, laboratory equipment, furniture and fixtures, office equipment and software, construction-in-progress and are net of accumulated depreciation. Long-lived assets by segment as of April 30, 2016 and 2015 consist of the following:

	2016		2015
Long-lived Assets, net:
Contract manufacturing services	$	22,783,000	$	12,800,000
Products in research and development		1,519,000		2,324,000
Total	$	24,302,000	$	15,124,000

Quarterly Financial Information Disclosure [Abstract]

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

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=68060357&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=68060357&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=68060357&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=68060357&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=68060357&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=68060357&loc=d3e8906-108599

+ Details

11. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Apr. 30, 2016

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

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

	Quarter Ended
	April 30,			January 31,			October 31,			July 31,			April 30,			January 31,			October 31,			July 31,
	2016			2016			2015			2015			2015			2015			2014			2014
Net revenues	$	18,783,000		$	6,709,000		$	9,523,000		$	9,671,000		$	9,308,000		$	5,677,000		$	6,300,000		$	5,496,000
Gross profit (a)	$	9,062,000		$	2,776,000		$	4,782,000		$	4,771,000		$	4,550,000		$	2,564,000		$	2,124,000		$	1,913,000
Loss from operations	$	(11,915,000	)	$	(16,867,000	)	$	(13,824,000	)	$	(13,754,000	)	$	(12,169,000	)	$	(13,022,000	)	$	(12,137,000	)	$	(13,171,000	)
Net loss	$	(11,884,000	)	$	(16,847,000	)	$	(13,198,000	)	$	(13,723,000	)	$	(12,135,000	)	$	(12,994,000	)	$	(12,100,000	)	$	(13,129,000	)
Series E preferred stock accumulated dividends (b)	$	(1,380,000	)	$	(1,380,000	)	$	(1,380,000	)	$	(1,378,000	)	$	(1,378,000	)	$	(1,033,000	)	$	(1,031,000	)	$	(1,028,000	)
Net loss attributable to common stockholders	$	(13,264,000	)	$	(18,227,000	)	$	(14,578,000	)	$	(15,101,000	)	$	(13,513,000	)	$	(14,027,000	)	$	(13,131,000	)	$	(14,157,000	)
Basic and diluted loss per common share	$	(0.05	)	$	(0.08	)	$	(0.07	)	$	(0.08	)	$	(0.07	)	$	(0.08	)	$	(0.07	)	$	(0.08	)

________________

	(a)	Gross profit represents contract manufacturing revenue less cost of contract manufacturing.
	(b)	Series E preferred stock accumulated dividends include dividends declared for the period (regardless of whether or not the dividends have been paid) and dividends accumulated for the period (regardless of whether or not the dividends have been declared).

12. SUBSEQUENT EVENTS

12 Months Ended

Apr. 30, 2016

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

Sale of Common Stock

Equity Distribution Agreement - Subsequent to April 30, 2016 and through July 14, 2016, we sold 2,649,318 shares of common stock at market prices under the Equity Distribution Agreement (Note 5) for aggregate gross proceeds of $1,232,000. As of July 14, 2016, aggregate gross proceeds of $11,799,000 remained available under the Equity Distribution Agreement.

August 2015 AMI Sales Agreement - Subsequent to April 30, 2016 and through July 14, 2016, we sold 1,876,918 shares of common stock at market prices under the August 2015 AMI Sales Agreement (Note 5) for aggregate gross proceeds of $937,000. As of July 14, 2016, aggregate gross proceeds of $21,616,000 remained available under the August 2015 AMI Sales Agreement.

Broad Based Annual Grant of Stock Options

On June 2, 2016, our Compensation Committee of the Board of Directors approved a broad based annual grant of stock options for fiscal year 2017 to substantially all of our employees, our three non-employee directors and one consultant to purchase an aggregate of 6,412,057 shares of our common stock at an exercise price of $0.5001. These stock options were granted under our 2011 Stock Incentive Plan and vest quarterly in equal installments over a two year period.

Series E Preferred Stock Dividend

On June 2, 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 April 1, 2016 through June 30, 2016. The cash dividend of $1,035,000 was paid on July 1, 2016 to holders of the Series E Preferred Stock of record on June 17, 2016.

SCHEDULE II - VALUATION OF QUALIFYING ACCOUNTS

12 Months Ended

Apr. 30, 2016

Valuation and Qualifying Accounts [Abstract]

SCHEDULE II - VALUATION OF QUALIFYING ACCOUNTS

	Balance at							Balance
	beginning							at end
Description	of period		Additions		Deductions			of period
Valuation reserve for trade and other receivables, and unbilled amounts
Year ended April 30, 2014	$	108,000	$	–	$	(3,000	)	$	105,000
Year ended April 30, 2015	$	105,000	$	–	$	(8,000	)	$	97,000
Year ended April 30, 2016	$	97,000	$	–	$	(97,000	)	$	–

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Apr. 30, 2016

Liquidity and Financial Condition

Basis of Presentation

Use of Estimates

Cash and Cash Equivalents

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

Restricted cash

Trade and Other Receivables

	2016		2015
Trade receivables⁽¹⁾	$	2,494,000	$	3,423,000
Other receivables, net		365,000		390,000
Trade and other receivables, net	$	2,859,000	$	3,813,000

______________

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

Allowance for Doubtful Accounts

Inventories

	2016		2015
Raw materials	$	10,911,000	$	3,821,000
Work-in-process		5,275,000		3,533,000
Total inventories	$	16,186,000	$	7,354,000

Property and Equipment, net

Concentrations of Credit Risk and Customer Base

Comprehensive Loss

Impairment

Fair Value of Financial Instruments

Fair Value Measurements

	·	Level 1 – Observable inputs, such as unadjusted quoted prices in active markets for identical assets or liabilities.
	·	Level 2 – Observable inputs other than quoted prices included in Level 1, such as assets or liabilities whose values are based on quoted market prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets.
	·	Level 3 – Unobservable inputs that are supported by little or no market activity and significant to the overall fair value measurement of the assets or liabilities; therefore, requiring the company to develop its own valuation techniques and assumptions.

Customer Deposits

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

Deferred Rent

Revenue Recognition

Contract Manufacturing Revenue

License Revenue

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 consolidated financial statements.

Research and Development Expenses

Share-based Compensation

Income Taxes

Basic and Dilutive Net Loss Per Common Share

	2016		2015		2014
Stock options		1,764,684		3,833,193		4,576,112
ESPP		265,029		46,992		72,896
Warrants		–		–		3,802
Total		2,029,713		3,880,185		4,652,810

	2016		2015		2014
Stock options		19,186,454		8,471,005		5,151,523
Warrants		273,280		273,280		273,280
Series E Preferred Stock		13,251,849		9,879,531		1,253,452
Total		32,711,583		18,623,816		6,678,255

Pending Adoption of Recent Accounting Pronouncements

Pending Adoption of Recent Accounting Pronouncements

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Apr. 30, 2016

Trade and Other Receivables

	2016		2015
Trade receivables⁽¹⁾	$	2,494,000	$	3,423,000
Other receivables, net		365,000		390,000
Trade and other receivables, net	$	2,859,000	$	3,813,000

______________

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

Inventories

	2016		2015
Raw materials	$	10,911,000	$	3,821,000
Work-in-process		5,275,000		3,533,000
Total inventories	$	16,186,000	$	7,354,000

Antidilutive Shares

	2016		2015		2014
Stock options		1,764,684		3,833,193		4,576,112
ESPP		265,029		46,992		72,896
Warrants		–		–		3,802
Total		2,029,713		3,880,185		4,652,810

	2016		2015		2014
Stock options		19,186,454		8,471,005		5,151,523
Warrants		273,280		273,280		273,280
Series E Preferred Stock		13,251,849		9,879,531		1,253,452
Total		32,711,583		18,623,816		6,678,255

3. COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Apr. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of operating leases

Lease Execution Date	Approximate Square Footage Leased	# of Buildings Occupied	Initial Lease Term Expiration Date	# of Options to Extend Lease	Extended Lease Term Expiration Date⁽¹⁾
December 1998	48,000	2	12/31/17	2	12/31/27
May 2010	13,000	1	12/31/17	1	12/31/22
July 2014	40,000	1	7/31/21	2	7/31/31
April 2016	26,000	1	8/31/23	2	8/31/35
April 2016	25,000	1	8/31/23	2	8/31/35

______________

⁽¹⁾

Extended lease term expiration date assumes we execute all available option(s) to extend lease in accordance with the terms of the lease agreement.

Future minimum lease payments under all non-cancelable operating leases

Year ending April 30,:		Minimum Lease Payments
	2017	$	2,006,000
	2018		1,976,000
	2019		1,283,000
	2020		1,272,000
	2021		1,309,000
	Thereafter		2,065,000
		$	9,911,000

Schedule of licensing agreements

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

+ References + Details

4. LICENSING AGREEMENTS (Tables)

12 Months Ended

Apr. 30, 2016

Licensing Agreements

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

______________

(1)

(2)

In the event we utilize a third-party contract manufacturer other than Lonza to manufacture bavituximab for commercial purposes, we would owe Lonza 300,000 pounds sterling per year.

5. STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Apr. 30, 2016

Common Stock

Schedule of stock issued under financing transactions

Description of Financing Transaction	Number of Common Stock Shares Issued		Gross Proceeds Raised
Fiscal Year 2014
At Market Issuance Sales Agreement dated December 27, 2012		33,527,369	$	55,424,000
Fiscal Year 2015
At Market Issuance Sales Agreement dated December 27, 2012		3,983,360	$	6,204,000
At Market Issuance Sales Agreement dated June 13, 2014		9,681,757	$	13,544,000
		13,665,117	$	19,748,000
Fiscal Year 2016
At Market Issuance Sales Agreement dated June 13, 2014		8,629,738	$	11,456,000
At Market Issuance Sales Agreement dated August 7, 2015		6,751,651	$	7,447,000
Equity Distribution Agreement dated August 7, 2015		8,472,288	$	6,969,000
Common Stock Purchase Agreement dated October 30, 2015		18,518,518	$	20,000,000
		42,372,195	$	45,872,000

Preferred Stock

Schedule of stock issued under financing transactions

Description of Financing Transaction	Number of Preferred Stock Shares Issued		Gross Proceeds Raised
Fiscal Year 2014
Initial Public Offering dated February 11, 2014		775,000	$	19,375,000
Fiscal Year 2015
At Market Issuance Sales Agreement dated June 13, 2014		799,764	$	19,205,000
Fiscal Year 2016
At Market Issuance Sales Agreement dated June 13, 2014		2,676	$	60,000

Schedule of preferred stock dividends

Declaration

Date

Dividend

Per Share

Annualized

Percentage

Rate

Liquidation

Preference

Accrual

Period

Record

Date

Payment

Date

Fiscal year 2014

3/11/2014

$0.29890⁽¹⁾

10.50%

$25.00

2/19/2014 – 3/31/2014

3/21/2014

4/1/2014

Fiscal year 2015

6/10/2014

$0.65625

10.50%

$25.00

4/1/2014 – 6/30/2014

6/20/2014

7/1/2014

9/8/2014

$0.65625

10.50%

$25.00

7/1/2014 – 9/30/2014

9/19/2014

10/1/2014

12/9/2014

$0.65625

10.50%

$25.00

10/1/2014 – 12/31/2014

12/19/2014

1/2/2015

3/10/2015

$0.65625

10.50%

$25.00

1/1/2015 – 3/31/2015

3/20/2015

4/1/2015

Fiscal year 2016

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

3/7/2016

$0.65625

10.50%

$25.00

1/1/2016 – 3/31/2016

3/18/2016

4/1/2016

______________

⁽¹⁾

Dividend per share was pro-rated for the initial accrual period starting February 19, 2014.

6. EQUITY COMPENSATION PLANS (Tables)

12 Months Ended

Apr. 30, 2016

Share-based compensation expense

	2016		2015		2014
Cost of contract manufacturing	$	41,000	$	59,000	$	68,000
Research and development		2,124,000		2,904,000		2,804,000
Selling, general and administrative		2,733,000		3,739,000		3,335,000
Total	$	4,898,000	$	6,702,000	$	6,207,000

Share-based compensation from:
Stock options	$	4,720,000	$	6,465,000	$	5,803,000
Restricted stock awards		–		–		139,000
ESPP		178,000		237,000		265,000
	$	4,898,000	$	6,702,000	$	6,207,000

Stock Options

Fair value valuation assumptions

	Year Ended April 30,
	2016		2015		2014
Risk-free interest rate		1.66%		1.95%		1.32%
Expected life (in years)		5.96		5.74		5.84
Expected volatility		104.74%		111.78%		113.92%
Expected dividend yield		–		–		–

Schedule of stock option transaction activity

Stock Options	Shares			Weighted Average Exercisable Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value ⁽¹⁾
Outstanding, May 1, 2015		20,708,672			$1.54
Granted		4,173,260			$1.26
Exercised		(177,266	)		$0.79
Canceled or expired		(953,405	)		$1.87
Outstanding, April 30, 2016		23,751,261			$1.48		6.68	$	–

Exercisable and expected to vest		23,652,443			$1.48		6.67	$	–
Exercisable, April 30, 2016		20,153,764			$1.51		6.31	$	–

______________

⁽¹⁾

Employee Stock Purchase Plan [Member]

Schedule of Share Based Payment Award Employee Stock Purchase Plan Valuation Assumptions Table Text Block

	Year Ended April 30,
	2016		2015		2014
Risk-free interest rate		0.18%		0.06%		0.08%
Expected life (in years)		0.50		0.50		0.50
Expected volatility		46.14%		63.54%		93.39%
Expected dividend yield		–		–		–

8. INCOME TAXES (Tables)

12 Months Ended

Apr. 30, 2016

Income Tax Disclosure [Abstract]

Provision for income taxes

	2016			2015			2014
Federal income taxes at statutory rate	$	(18,921,000	)	$	(17,122,000	)	$	(12,023,000	)
State income taxes		(4,824,000	)		(4,450,000	)		(3,124,000	)
Expiration and adjustments of deferred tax assets		1,580,000			1,790,000			2,751,000
Change in valuation allowance		21,871,000			19,532,000			12,153,000
Other, net		294,000			250,000			243,000
Income tax (expense) benefit	$	–		$	–		$	–

Deferred income taxes

	2016			2015
Share-based compensation	$	8,806,000		$	7,119,000
Deferred revenue		4,296,000			2,840,000
Other		2,547,000			2,765,000
Net operating losses		152,746,000			133,800,000

Total deferred tax assets		168,395,000			146,524,000
Less valuation allowance		(168,395,000	)		(146,524,000	)

Net deferred tax assets	$	–		$	–

10. SEGMENT REPORTING (Tables)

12 Months Ended

Apr. 30, 2016

Segment Reporting [Abstract]

Segment information

	2016			2015			2014
Contract manufacturing services revenue	$	44,357,000		$	26,744,000		$	22,294,000
Cost of contract manufacturing services		22,966,000			15,593,000			13,110,000
Gross profit	$	21,391,000		$	11,151,000		$	9,184,000

Revenue from products in research and development	$	329,000		$	37,000		$	107,000
Research and development expense		(59,529,000	)		(42,996,000	)		(27,723,000	)
Selling, general and administrative expense		(18,551,000	)		(18,691,000	)		(17,274,000	)
Other income (expense), net		708,000			141,000			344,000
Net loss	$	(55,652,000	)	$	(50,358,000	)	$	(35,362,000	)

Customer Revenue

Customer	Geographic Location	2016		2015		2014
Halozyme Therapeutics, Inc.	U.S.		69%		79%		91%
Customer A	U.S.		26		12		–
Other customers	U.S./non-U.S.		5		9		9
Total			100%		100%		100%

Customer revenue by geographic location

		2016		2015		2014
U.S.		$	44,357,000	$	26,715,000	$	22,225,000
Non-U.S.			–		29,000		69,000
	Total	$	44,357,000	$	26,744,000	$	22,294,000

Long-lived assets

	2016		2015
Long-lived Assets, net:
Contract manufacturing services	$	22,783,000	$	12,800,000
Products in research and development		1,519,000		2,324,000
Total	$	24,302,000	$	15,124,000

11. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)

12 Months Ended

Apr. 30, 2016

Quarterly Financial Information Disclosure [Abstract]

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

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

	Quarter Ended
	April 30,			January 31,			October 31,			July 31,			April 30,			January 31,			October 31,			July 31,
	2016			2016			2015			2015			2015			2015			2014			2014
Net revenues	$	18,783,000		$	6,709,000		$	9,523,000		$	9,671,000		$	9,308,000		$	5,677,000		$	6,300,000		$	5,496,000
Gross profit (a)	$	9,062,000		$	2,776,000		$	4,782,000		$	4,771,000		$	4,550,000		$	2,564,000		$	2,124,000		$	1,913,000
Loss from operations	$	(11,915,000	)	$	(16,867,000	)	$	(13,824,000	)	$	(13,754,000	)	$	(12,169,000	)	$	(13,022,000	)	$	(12,137,000	)	$	(13,171,000	)
Net loss	$	(11,884,000	)	$	(16,847,000	)	$	(13,198,000	)	$	(13,723,000	)	$	(12,135,000	)	$	(12,994,000	)	$	(12,100,000	)	$	(13,129,000	)
Series E preferred stock accumulated dividends (b)	$	(1,380,000	)	$	(1,380,000	)	$	(1,380,000	)	$	(1,378,000	)	$	(1,378,000	)	$	(1,033,000	)	$	(1,031,000	)	$	(1,028,000	)
Net loss attributable to common stockholders	$	(13,264,000	)	$	(18,227,000	)	$	(14,578,000	)	$	(15,101,000	)	$	(13,513,000	)	$	(14,027,000	)	$	(13,131,000	)	$	(14,157,000	)
Basic and diluted loss per common share	$	(0.05	)	$	(0.08	)	$	(0.07	)	$	(0.08	)	$	(0.07	)	$	(0.08	)	$	(0.07	)	$	(0.08	)

________________

	(a)	Gross profit represents contract manufacturing revenue less cost of contract manufacturing.
	(b)	Series E preferred stock accumulated dividends include dividends declared for the period (regardless of whether or not the dividends have been paid) and dividends accumulated for the period (regardless of whether or not the dividends have been declared).

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Receivables) - USD ($)

Apr. 30, 2016

Apr. 30, 2015

Trade and other receivables, net

Trade receivables

^[1]

$ 2,494,000

$ 3,423,000

Other receivables, net

365,000

390,000

$ 2,859,000

$ 3,813,000

[1]	Represents amounts billed for contract manufacturing services provided by Avid.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Inventories) - USD ($)	Apr. 30, 2016	Apr. 30, 2015
Accounting Policies [Abstract]
Raw materials	$ 10,911,000	$ 3,821,000
Work-in-process	5,275,000	3,533,000
Total inventories	$ 16,186,000	$ 7,354,000

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Antidilutive shares) - shares	12 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2014
Dilutive effect of shares on diluted shares outstanding	2,029,713	3,880,185	4,652,810
Stock Options
Dilutive effect of shares on diluted shares outstanding	1,764,684	3,833,193	4,576,112
Employee Stock Purchase Plan [Member]
Dilutive effect of shares on diluted shares outstanding	265,029	46,992	72,896
Warrants
Dilutive effect of shares on diluted shares outstanding	0	0	3,802

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Antidilutive shares, conversion price) - shares	12 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2014
Dilutive effect of shares on diluted shares outstanding	2,029,713	3,880,185	4,652,810
Conversion Price greater than Market Price [Member]
Dilutive effect of shares on diluted shares outstanding	32,711,583	18,623,816	6,678,255
Stock Options
Dilutive effect of shares on diluted shares outstanding	1,764,684	3,833,193	4,576,112
Stock Options \| Conversion Price greater than Market Price [Member]
Dilutive effect of shares on diluted shares outstanding	19,186,454	8,471,005	5,151,523
Warrants
Dilutive effect of shares on diluted shares outstanding	0	0	3,802
Warrants \| Conversion Price greater than Market Price [Member]
Dilutive effect of shares on diluted shares outstanding	273,280	273,280	273,280
Series E Preferred Stock [Member] \| Conversion Price greater than Market Price [Member]
Dilutive effect of shares on diluted shares outstanding	13,251,849	9,879,531	1,253,452

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	2 Months Ended	12 Months Ended
	Jul. 14, 2016	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Cash and cash equivalents		$ 61,412,000	$ 68,001,000	$ 77,490,000	$ 35,204,000
Proceeds from issuance of equity		45,872,000
Amounts remaining under registration statements	$ 112,445,000
Restricted cash pledged as collateral		600,000	0
Allowance for doubtful accounts - other receivables		$ 0	$ 5,000
Estimated useful lives of property and equipment		3 to 10 years
Concentration risk percentage		100.00%	100.00%	100.00%
Subsequent Event [Member]
Proceeds from issuance of equity	$ 2,169,000
Stock options granted, shares	6,412,057
Common stock issued for cash, net of issuance costs, shares	4,526,236
Accounts Receivable [Member] \| Four Customers [Member]
Concentration risk percentage		98.00%
Accounts Receivable [Member] \| Two Customers [Member]
Concentration risk percentage			97.00%

3. COMMITMENTS AND CONTINGENCIES (Details-Schedule of leases)	12 Months Ended
	Apr. 30, 2016 ft² Number
Approximate square footage leased \| ft²	152,000
Lease 1 [Member]
Approximate square footage leased \| ft²	48,000
Number of buildings occupied	2
Initial lease term expiration date	Dec. 31, 2017
Number of options to extend lease	2
Extended lease term expiration date	Dec. 31, 2027
Lease 2 [Member]
Approximate square footage leased \| ft²	13,000
Number of buildings occupied	1
Initial lease term expiration date	Dec. 31, 2017
Number of options to extend lease	1
Extended lease term expiration date	Dec. 31, 2022
Lease 3 [Member]
Approximate square footage leased \| ft²	40,000
Number of buildings occupied	1
Initial lease term expiration date	Jul. 31, 2021
Number of options to extend lease	2
Extended lease term expiration date	Jul. 31, 2031
Lease 4 [Member]
Approximate square footage leased \| ft²	26,000
Number of buildings occupied	1
Initial lease term expiration date	Aug. 31, 2023
Number of options to extend lease	2
Extended lease term expiration date	Aug. 31, 2035
Lease 5 [Member]
Approximate square footage leased \| ft²	25,000
Number of buildings occupied	1
Initial lease term expiration date	Aug. 31, 2023
Number of options to extend lease	2
Extended lease term expiration date	Aug. 31, 2035

3. COMMITMENTS AND CONTINGENCIES (Details-future lease payments)	Apr. 30, 2016 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2017	$ 2,006,000
2018	1,976,000
2019	1,283,000
2020	1,272,000
2021	1,309,000
Thereafter	2,065,000
Operating Leases, Future Minimum Payments Due	$ 9,911,000

4. LICENSING AGREEMENTS (Details)	Apr. 30, 2016 USD ($)
Total Milestone Obligations Expensed To Date	$ 922,000
Potential Future Milestone Obligations	6,675,000
UTSWMC August 2001
Total Milestone Obligations Expensed To Date	173,000
Potential Future Milestone Obligations	300,000
UTSWMC August 2005
Total Milestone Obligations Expensed To Date	85,000
Potential Future Milestone Obligations	375,000
Lonza March 2005
Total Milestone Obligations Expensed To Date	64,000
Potential Future Milestone Obligations	0
Avanir December 2003
Total Milestone Obligations Expensed To Date	100,000
Potential Future Milestone Obligations	1,000,000
Genentech November 2003
Total Milestone Obligations Expensed To Date	500,000
Potential Future Milestone Obligations	$ 5,000,000

4. LICENSING AGREEMENTS (Details Narrative) - USD ($)	12 Months Ended
4. LICENSING AGREEMENTS (Details Narrative) - USD ($)	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2014
Research and development expense	$ 59,529,000	$ 42,996,000	$ 27,723,000
License revenue	329,000	37,000	107,000
Bavituximab Program [Member] \| Milestone Obligations Expense [Member]
Research and development expense		0	125,000
Bavituximab Program [Member] \| Milestone Obligations Expense [Member]
Research and development expense	0
UTSWMC License [Member] \| Milestone Obligations Expense [Member]
Research and development expense	75,000	0	0
Affitech Agreements [Member]
License revenue	$ 37,000	$ 37,000	$ 107,000

5. STOCKHOLDERS EQUITY (Details - Common stock issuances) - USD ($)	12 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2014
Gross proceeds raised	$ 45,195,000	$ 19,235,000	$ 53,920,000
Common Stock
Number of common stock shares issued, shares	42,372,195	13,665,117	33,527,369
Gross proceeds raised	$ 45,872,000	$ 197,480,000	$ 55,424,000
December 27, 2012 Financing [Member] \| Common Stock
Number of common stock shares issued, shares		3,983,360	33,527,369
Gross proceeds raised		$ 6,204,000	$ 55,424,000
June 13, 2014 Financing [Member] \| Common Stock
Number of common stock shares issued, shares	8,629,738	9,681,757
Gross proceeds raised	$ 11,456,000	$ 13,544,000
August 7, 2015 Financing [Member] \| Common Stock
Number of common stock shares issued, shares	6,751,651
Gross proceeds raised	$ 7,447,000
Equity Distribution Agreement [Member] \| Common Stock
Number of common stock shares issued, shares	8,472,288
Gross proceeds raised	$ 6,969,000
October 30, 2015 Financing [Member] \| Common Stock
Number of common stock shares issued, shares	18,518,518
Gross proceeds raised	$ 20,000,000

5. STOCKHOLDERS EQUITY (Details - Preferred stock issuances) - Series E Preferred Stock [Member] - USD ($)	12 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Apr. 30, 2014
June 13, 2014 Financing [Member]
Number of preferred stock shares issued	2,676	799,764
Gross proceeds raised	$ 60,000	$ 19,205,000
February 11, 2014 Offering [Member]
Number of preferred stock shares issued			775,000
Gross proceeds raised			$ 19,375,000

5. STOCKHOLDERS EQUITY (Details - Preferred Stock Dividends) - Series E Preferred Stock [Member] - $ / shares

12 Months Ended

Apr. 30, 2015

Apr. 30, 2014

Dividend paid April 1, 2014 [Member]

Mar. 11, 2014

^[1]

$ 0.29890

10.50%

$ 25.00

2/19/2014 - 3/31/2014

Mar. 21, 2014

Dividend paid July 1, 2014 [Member]

Apr. 01, 2014

Jun. 10, 2014

$ 0.65625

10.50%

$ 25.00

4/1/2014 - 6/30/2014

Jun. 20, 2014

Dividend paid October 1, 2014 [Member]

Jul. 01, 2014

Sep. 08, 2014

$ 0.65625

10.50%

$ 25.00

7/1/2014 - 9/30/2014

Sep. 19, 2014

Dividend paid January 2, 2015 [Member]

Oct. 01, 2014

Dec. 09, 2014

$ 0.65625

10.50%

$ 25.00

10/1/2014 - 12/31/2014

Dec. 19, 2014

Dividend paid April 1, 2015 [Member]

Jan. 02, 2015

Mar. 10, 2015

$ 0.65625

10.50%

$ 25.00

1/1/2015 - 3/31/2015

Mar. 20, 2015

Apr. 01, 2015

[1]	Dividend per share was pro-rated for the initial accrual period starting February 19, 2014.

5. STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)

12 Months Ended

Apr. 30, 2016

Apr. 30, 2015

Apr. 30, 2014

Jul. 14, 2016

Stock Incentive Plans [Member]

$ 112,445,000

Employee Stock Purchase Plan [Member]

39,561,165

5,000,000

Warrants

273,280

Common Stock

42,372,195

13,665,117

33,527,369

Series E Preferred Stock [Member]

$ 677,000

$ 513,000

$ 1,504,000

$ 1,000

1,002,000

1,458,000

December 2012 AMI Agreement

^[1]

45,745,760

Proceeds from sale of common stock, gross

75,000,000

75,000,000

June 2014 AMI Agreement | Common Stock

$ 0

Proceeds from sale of common stock, gross

$ 25,000,000

25,000,000

June 2014 AMI Agreement | Series E Preferred Stock [Member]

$ 0

2,676

799,764

$ 1,000

$ 1,002,000

Proceeds from sale of preferred stock, gross

10,735,000

60,000

$ 19,205,000

August 2015 AMI Sales Agreement [Member[

30,000,000

Equity Distribution Agreement [Member]

22,553,000

20,000,000

Equity Distribution Agreement [Member] | Common Stock

$ 13,031,000

Common Stock Purchase Agreement [Member]

8,472,288

Proceeds from sale of common stock, gross

18,518,518

$ 20,000,000

February 2014 Initial Public Offering [Member]

$ 1,000

Proceeds from sale of preferred stock, gross

1,458,000

$ 19,375,000

February 2014 Initial Public Offering [Member] | Series E Preferred Stock [Member]

775,000