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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Jan. 31, 2020	Mar. 02, 2020
Cover [Abstract]
Entity Registrant Name	Avid Bioservices, Inc.
Entity Central Index Key	0000704562
Document Type	10-Q
Document Period End Date	Jan. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--04-30
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		56,482,154
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020
Emerging Growth Company	false
Small Business	true
Entity Shell Company	false
Interactive Data Current	Yes
Incorporation State Country Name	DE
Entity File Number	001-32839

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jan. 31, 2020	Apr. 30, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 30,687	$ 32,351
Accounts receivable	10,151	7,374
Contract assets	6,111	4,327
Inventory	9,565	6,557
Prepaid expenses and other current assets	763	709
Total current assets	57,277	51,318
Property and equipment, net	26,850	25,625
Operating lease right-of-use assets	20,437	0
Restricted cash	350	1,150
Other assets	302	302
TOTAL ASSETS	105,216	78,395
CURRENT LIABILITIES:
Accounts payable	5,332	4,352
Accrued payroll and related costs	2,985	3,540
Contract liabilities	26,355	14,651
Operating lease liabilities	1,172	0
Other current liabilities	710	619
Total current liabilities	36,554	23,162
Operating lease liabilities, less current portion	21,584	0
Deferred rent, less current portion	0	2,072
Other long-term liabilities	0	93
TOTAL LIABILITIES	58,138	25,327
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred stock, $0.001 par value; 5,000 shares authorized; 1,648 shares issued and outstanding at January 31, 2020 and April 30, 2019, respectively	2	2
Common stock, $0.001 par value; 150,000 shares authorized; 56,479 and 56,136 shares issued and outstanding at January 31, 2020 and April 30, 2019, respectively	56	56
Additional paid-in-capital	613,323	613,615
Accumulated deficit	(566,303)	(560,605)
Total stockholders' equity	47,078	53,068
Total liabilities and stockholders' equity	$ 105,216	$ 78,395

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Jan. 31, 2020	Apr. 30, 2019
Statement of Financial Position [Abstract]
Preferred stock par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	1,648	1,648
Preferred stock, shares outstanding	1,648	1,648
Common stock par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000	150,000
Common stock, shares issued	56,479	56,136
Common stock, shares outstanding	56,479	56,136

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Income Statement [Abstract]
Revenues	$ 13,585	$ 13,781	$ 47,152	$ 36,548
Cost of revenues	12,800	11,731	41,921	32,972
Gross profit	785	2,050	5,231	3,576
Operating expenses:
Selling, general and administrative	2,996	3,242	10,989	9,273
Loss on lease termination	0	0	355	0
Total operating expenses	2,996	3,242	11,344	9,273
Operating loss	(2,211)	(1,192)	(6,113)	(5,697)
Interest and other income, net	107	9	415	190
Loss from continuing operations before income taxes	(2,104)	(1,183)	(5,698)	(5,507)
Income tax benefit	0	44	0	217
Loss from continuing operations, net of tax	(2,104)	(1,139)	(5,698)	(5,290)
Income from discontinued operations, net of tax	0	0	0	739
Net Loss	(2,104)	(1,139)	(5,698)	(4,551)
Comprehensive loss	(2,104)	(1,139)	(5,698)	(4,551)
Series E preferred stock accumulated dividends	(1,442)	(1,442)	(3,604)	(3,604)
Net loss attributable to common stockholders	$ (3,546)	$ (2,581)	$ (9,302)	$ (8,155)
Basic and diluted net (loss) income per common share attributable to common stockholders: Continuing Operations	$ (0.06)	$ (0.05)	$ (0.17)	$ (0.16)
Basic and diluted net (loss) income per common share attributable to common stockholders: Discontinued Operations	0	0	0	0.01
Net loss per common share attributable to common stockholders	$ (0.06)	$ (0.05)	$ (0.17)	$ (0.15)
Weighted average basic and diluted shares outstanding	56,404	56,069	56,275	55,949

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning balance, shares at Apr. 30, 2018	1,648	55,689
Beginning balance, value at Apr. 30, 2018	$ 2	$ 55	$ 614,810	$ (559,129)	$ 55,738
Series E preferred stock dividends			(3,244)		(3,244)
Cumulative-effect adjustment to accumulated deficit pursuant to adoption of ASU				2,739	2,739
Common stock issued under Employee Stock Purchase Plan, shares		40
Common stock issued under Employee Stock Purchase Plan, value			114		114
Exercise of stock options, shares		343
Exercise of stock options, value		$ 1	1,187		1,188
Stock-based compensation expense			1,080		1,080
Net loss				(4,551)	(4,551)
Ending balance, shares at Jan. 31, 2019	1,648	56,072
Ending balance, value at Jan. 31, 2019	$ 2	$ 56	613,947	(560,941)	53,064
Beginning balance, shares at Oct. 31, 2018	1,648	56,063
Beginning balance, value at Oct. 31, 2018	$ 2	$ 56	614,541	(559,802)	54,797
Series E preferred stock dividends			(1,081)		(1,081)
Exercise of stock options, shares		9
Exercise of stock options, value			29		29
Stock-based compensation expense			458		458
Net loss				(1,139)	(1,139)
Ending balance, shares at Jan. 31, 2019	1,648	56,072
Ending balance, value at Jan. 31, 2019	$ 2	$ 56	613,947	(560,941)	53,064
Beginning balance, shares at Apr. 30, 2019	1,648	56,136
Beginning balance, value at Apr. 30, 2019	$ 2	$ 56	613,615	(560,605)	53,068
Series E preferred stock dividends			(3,244)		(3,244)
Common stock issued under Employee Stock Purchase Plan, shares		47
Common stock issued under Employee Stock Purchase Plan, value			187		187
Exercise of stock options, shares		247
Exercise of stock options, value			916		916
Vesting of restricted stock units		49
Stock-based compensation expense			1,849		1,849
Net loss				(5,698)	(5,698)
Ending balance, shares at Jan. 31, 2020	1,648	56,479
Ending balance, value at Jan. 31, 2020	$ 2	$ 56	613,323	(566,303)	47,078
Beginning balance, shares at Oct. 31, 2019	1,648	56,338
Beginning balance, value at Oct. 31, 2019	$ 2	$ 56	613,325	(564,199)	49,184
Series E preferred stock dividends			(1,081)		(1,081)
Exercise of stock options, shares		120
Exercise of stock options, value			484		484
Vesting of restricted stock units		21
Stock-based compensation expense			595		595
Net loss				(2,104)	(2,104)
Ending balance, shares at Jan. 31, 2020	1,648	56,479
Ending balance, value at Jan. 31, 2020	$ 2	$ 56	$ 613,323	$ (566,303)	$ 47,078

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Statement of Stockholders' Equity [Abstract]
Dividends paid per share	$ 0.65625	$ 0.65625	$ 1.96875	$ 1.96875

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
$ in Thousands

9 Months Ended

Jan. 31, 2020

Jan. 31, 2019

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss

$ (5,698)

$ (4,551)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

2,276

2,006

Stock-based compensation

1,849

1,080

Loss on lease termination

355

Loss on disposal of assets

104

Gain on sale of research and development assets

(1,000)

^[1]

Changes in operating assets and liabilities:

Accounts receivable

(2,777)

(4,131)

Contract assets

(1,784)

(1,024)

Inventory

(3,008)

(402)

Prepaid expenses and other assets

(54)

114

Accounts payable

491

993

Accrued payroll and related expenses

(555)

(15)

Contract liabilities

11,704

(5,402)

Other accrued expenses and current liabilities

(32)

(590)

Assets and liabilities of discontinued operations

(4,425)

Net cash provided by (used in) operating activities

2,780

(17,243)

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property and equipment

(3,025)

(1,248)

Proceeds from sale of research and development assets

6,000

Net cash (used in) provided by investing activities

(3,025)

4,752

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from exercise of stock options

916

1,188

Proceeds from issuance of common stock under employee stock purchase plan

187

114

Dividends paid on preferred stock

(3,244)

Principal payments on finance lease

(78)

(74)

Net cash used in financing activities

(2,219)

(2,016)

Net decrease in cash, cash equivalents and restricted cash

(2,464)

(14,507)

Cash, cash equivalents and restricted cash, beginning of period

33,501

43,415

Cash, cash equivalents and restricted cash, end of period

31,037

28,908

SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES:

Decapitalization of right of use assets upon lease termination and/or modification

1,469

Unpaid purchases of property and equipment

489

Property and equipment acquired under finance lease

$ 0

$ 245

[1]

The gain on sale of research and development assets before income taxes was recorded in connection with the $1.0 million we received from Oncologie, Inc. ("Oncologie") under the September 2018 Asset Assignment and Purchase Agreement pursuant to which we sold to Oncologie our r84 technology, which included the assignment of certain licenses, patents and other assets useful and/or necessary for the potential commercialization of the r84 technology.

1. Description of Company and Basis of Presentation

9 Months Ended

Jan. 31, 2020

Organization And Business Description

Description of Company and Basis of Presentation

Note 1 – Description of Company and Basis of Presentation

Avid Bioservices, Inc. is a contract development and manufacturing organization (“CDMO”) that provides a comprehensive range of services from process development to Current Good Manufacturing Practices (“CGMP”) commercial manufacturing focused on biopharmaceutical products derived from mammalian cell culture for biotechnology and pharmaceutical companies.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) related to quarterly reports on Form 10-Q, and accordingly, they do not include all of the information and disclosures required by U.S. GAAP for annual financial statements. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2019, as filed with the SEC on June 27, 2019. The unaudited financial information for the interim periods presented herein reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial condition and results of operations for the periods presented, with such adjustments consisting only of normal recurring adjustments. Results of operations for interim periods covered by this Quarterly Report on Form 10-Q may not necessarily be indicative of results of operations for the full fiscal year or any other interim period.

The unaudited condensed consolidated financial statements include the accounts of Avid Bioservices, Inc. and its subsidiaries. All intercompany accounts and transactions among the consolidated entities have been eliminated in the unaudited condensed consolidated financial statements.

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

Certain prior period amounts within the accompanying unaudited condensed consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications did not affect our financial position, net loss, cash flows as of and for the periods presented.

Discontinued Operations

For all periods presented, the operating results of our former research and development segment have been excluded from continuing operations and reported as income from discontinued operations, net of tax, in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss (Note 7).

2. Summary of Significant Accounting Policies

9 Months Ended

Jan. 31, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2 – Summary of Significant Accounting Policies

Information regarding our significant accounting policies is contained in Note 2, “Summary of Significant Accounting Policies”, of the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended April 30, 2019.

Revenue Recognition

Revenue is recognized from services provided under our customer contracts, which we have disaggregated into manufacturing and process development revenue streams.

Manufacturing revenue

Manufacturing revenue generally represents revenue from the manufacturing of customer products recognized over time utilizing an input method that compares the cost of cumulative work-in-process to date to the most current estimates for the entire cost of the performance obligation. Under a manufacturing contract, a quantity of manufacturing runs are ordered and the product is manufactured according to the customer’s specifications and typically only one performance obligation is included. Each manufacturing run represents a distinct service that is sold separately and has stand-alone value to the customer. The products are manufactured exclusively for a specific customer and have no alternative use. The customer retains control of its product during the entire manufacturing process and can make changes to the process or specifications at its request. Under these agreements, we are entitled to consideration for progress to date that includes an element of profit margin.

Process development revenue

Process development revenue generally represents revenue from services associated with the custom development of a manufacturing process and analytical methods for a customer’s product. Process development revenue is recognized over time utilizing an input method that compares the cost of cumulative work-in-process to date to the most current estimates for the entire cost of the performance obligation. Under a process development contract, the customer owns the product details and process, which has no alternative use. These process development projects are customized to each customer to meet its specifications and typically only one performance obligation is included. Each process represents a distinct service that is sold separately and has stand-alone value to the customer. The customer also retains control of its product as the product is being created or enhanced by our services and can make changes to its process or specifications upon request.

The following table summarizes our manufacturing and process development revenue streams for the three and nine months ended January 31, 2020 and 2019 (in thousands):

	Three Months Ended January 31,				Nine Months Ended January 31,
	2020		2019		2020		2019
Manufacturing revenue	$	11,525	$	10,770	$	40,422	$	28,313
Process development revenue		2,060		3,011		6,730		8,235
Total revenues	$	13,585	$	13,781	$	47,152	$	36,548

The timing of revenue recognition, billings and cash collections results in billed trade receivables, contract assets (unbilled receivables), and contract liabilities (customer deposits and deferred revenue). Contract assets are recorded when our right to consideration is conditioned on something other than the passage of time. Contract assets are reclassified to accounts receivable on the balance sheet when our rights become unconditional. Contract liabilities represent customer deposits and deferred revenue billed and/or received in advance of our fulfillment of performance obligations. Contract liabilities convert to revenue as we perform our obligations under the contract.

During the three and nine months ended January 31, 2020, we recognized revenue of $0.6 million and $13.2 million, respectively, for which the contract liability was recorded in a prior period.

During the three and nine months ended January 31, 2019, we recognized revenue of $2.2 million and $12.2 million, respectively, for which the contract liability was recorded in a prior period.

We apply the practical expedient available under ASC 606 that permits us not to disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. In addition, we do not have any unsatisfied performance obligations for contracts greater than one year as of January 31, 2020.

Leases

On May 1, 2019, we adopted the Accounting Standards Update (“ASU”) No. 2016-02, Leases (“ASC 842”) using the modified retrospective approach. Accordingly, prior period financial information and disclosures have not been adjusted and will continue to be reported in accordance with our historical accounting under the previous lease standard. In addition, we elected the package of practical expedients available for existing contracts, which allowed us to carry forward our historical assessments of lease identification, lease classification, and initial direct costs. As a result of adopting ASC 842, we recognized right-of-use assets and lease liabilities of $23.3 million and $25.5 million, respectively, on May 1, 2019, which are primarily related to our facility operating leases (Note 3). The difference between the right-of-use assets and lease liabilities is primarily attributed to the elimination of deferred rent. There was no adjustment to the opening balance of accumulated deficit as a result of the adoption of ASC 842.

We determine if an arrangement is or contains a lease at inception. Our operating leases with a term greater than one year are included in operating lease right-of-use assets, operating lease liabilities and operating lease liabilities, less current portion in our condensed consolidated balance sheet at January 31, 2020. Right-of-use assets represent our right to use an underlying asset during the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the net present value of lease payments, we use our incremental borrowing rate which represents an estimated rate of interest that we would have to pay to borrow equivalent funds on a collateralized basis at the lease commencement date.

Our operating leases may include options to extend the lease which are included in the lease term when it is reasonably certain that we will exercise a renewal option(s). Operating lease expense is recognized on a straight-line basis over the expected lease term.

We elected the post-transition practical expedient to not separate lease components from non-lease components for all existing leases. We also elected a policy to not apply the recognition requirements of ASC 842 for short-term leases.

Restricted Cash

Under the terms of three separate operating leases related to our facilities (Note 3), we are required to maintain, as collateral, letters of credit. During the quarter ended October 31, 2019, $0.8 million of restricted cash that was pledged as collateral under two such letters of credit was released back to us. Accordingly, as of January 31, 2020 and April 30, 2019, restricted cash of $0.4 million and $1.2 million, respectively, was pledged as collateral under these letter(s) of credit.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows (in thousands):

	January 31, 2020		April 30, 2019		January 31, 2019		April 30, 2018
Cash and cash equivalents	$	30,687	$	32,351	$	27,758	$	42,265
Restricted cash		350		1,150		1,150		1,150
Total cash, cash equivalents and restricted cash	$	31,037	$	33,501	$	28,908	$	43,415

Inventory

Inventory consists of raw materials inventory and is valued at the lower of cost, determined by the first-in, first-out method, or net realizable value. We periodically review raw materials inventory for potential impairment and adjust inventory to its net realizable value based on the estimate of future use and reduce the carrying value of inventory as deemed necessary.

Property and Equipment

Property and equipment is recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets, generally ranging from three to ten years. Amortization of leasehold improvements is calculated using the straight-line method over the shorter of the estimated useful life of the asset or the remaining lease term. Construction-in-progress, which represents direct costs related to the construction of various equipment and leasehold improvements primarily associated with our manufacturing facilities, is not depreciated until the asset is completed and placed into service. No interest was incurred or capitalized as construction-in-progress as of January 31, 2020 and April 30, 2019.

All of our property and equipment are located in the U.S. Property and equipment consist of the following (in thousands):

	January 31, 2020			April 30, 2019
Leasehold improvements	$	21,130		$	20,574
Laboratory and manufacturing equipment		14,968			12,858
Computer equipment and software		4,931			4,644
Furniture, fixtures and office equipment		685			528
Construction-in-progress		1,963			1,590
Total property and equipment, gross	$	43,677		$	40,194
Less: accumulated depreciation and amortization		(16,827	)		(14,569	)
Total property and equipment, net	$	26,850		$	25,625

Depreciation and amortization expense for the three and nine months ended January 31, 2020 was $0.8 million and $2.3 million, respectively.

Depreciation and amortization expense for the three and nine months ended January 31, 2019 was $0.7 million and $2.0 million, respectively.

Impairment

Long-lived assets are reviewed for impairment in accordance with authoritative guidance for impairment or disposal of long-lived assets. Long-lived assets are reviewed for events or changes in circumstances that indicate that their carrying value may not be recoverable. Long-lived assets are reported at the lower of carrying amount or fair value less cost to sell if impairment indicators exist. For the nine months ended January 31, 2020 and 2019, there were no indicators of impairment of the value of our long-lived assets and no cumulative impairment losses recognized as of January 31, 2020.

Stock-Based Compensation

We account for stock options, restricted stock units and other stock-based awards granted under our equity compensation plans in accordance with the authoritative guidance for stock-based compensation. The estimated fair value of stock options granted 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 restricted stock units is measured at the grant date based on the closing market price of our common stock on the date of grant, and is recognized as expense on a straight-line basis over the period of vesting. Forfeitures are recognized as a reduction of stock-based compensation expense as they occur. As of January 31, 2020, there were no outstanding stock-based awards with market or performance conditions.

Comprehensive Loss

Comprehensive loss is 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.

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 January 31, 2020 and April 30, 2019, 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). In addition, there were no transfers between any Levels of the fair value hierarchy during the nine months ended January 31, 2020 and 2019.

Income Taxes

The income tax benefit recognized in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss during the three and nine months ended January 31, 2019 resulted from the “Intraperiod Tax Allocation” rules under ASC 740: Income Taxes, which requires the allocation of an entity’s total annual income tax provision among continuing operations and, in our case, discontinued operations. Accordingly, a tax benefit was recorded in continuing operations with an offsetting tax expense recorded in discontinued operations for the nine months ended January 31, 2019 (Note 7).

Recent Accounting Standards Not Yet Adopted

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This standard update requires that certain financial assets be measured at amortized cost net of an allowance for estimated credit losses such that the net receivable represents the present value of expected cash collection. In addition, this standard update requires that certain financial assets be measured at amortized cost reflecting an allowance for estimated credit losses expected to occur over the life of the assets. The estimate of credit losses must be based on all relevant information including historical information, current conditions and reasonable and supportable forecasts that affect the collectability of the amounts. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) and Leases (Topic 842): Effective Dates, which defers the effective date of ASU 2016-13 to fiscal years beginning after December 15, 2022 for all entities except SEC reporting companies that are not smaller reporting companies. As a smaller reporting company, ASU 2016-13 will now be effective for our fiscal year 2024 beginning May 1, 2023; however, early adoption is permitted. We are currently evaluating the timing and impact of adopting ASU 2016-13 on our consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements in Topic 820 by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty and adding new disclosure requirements, primarily surrounding Level 3 fair value measurements and transfers between Level 1 and Level 2. ASU 2018-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019, which will be our fiscal year 2021 beginning May 1, 2020. Early adoption is permitted for any removed or modified disclosures. We are currently evaluating the new guidance and do not expect the adoption of ASU 2018-13 to have a material impact on our consolidated financial statements and related disclosures.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2020, which will be our fiscal year 2022 beginning May 1, 2021. Early adoption is permitted. We are currently evaluating the timing and impact of adopting ASU 2019-12 on our consolidated financial statements and related disclosures.

3. Leases

9 Months Ended

Jan. 31, 2020

Lessee Disclosure [Abstract]

Leases

Note 3 – Leases

We currently lease office, manufacturing and warehouse space in four buildings under three separate non-cancellable operating lease agreements. All of our leased facilities are located in close proximity in Tustin, California, have original lease terms ranging from 7 to 12 years, contain two multi-year renewal options, and scheduled rent increases of 3% on either an annual or biennial basis. With respect to multi-year renewal options, a multi-year renewal option was included in determining the right-of-use asset and lease liability for two of our leases as we considered it reasonably certain that we would exercise such renewal options. In addition, two of our leases provide for periods of free rent, lessor improvements and tenant improvement allowances, of which, certain of these improvements have been classified as leasehold improvements and are being amortized over the shorter of the estimated useful life of the improvements or the remaining life of the lease. The operating lease right-of-use assets and liabilities on our January 31, 2020 condensed consolidated balance sheet primarily relate to these facility leases.

In September 2019, we entered into a lease amendment to terminate an operating lease for one of our non-manufacturing facilities that was primarily utilized for warehouse space. The lease termination was primarily driven by our efforts to reduce costs by leveraging available warehouse space in our other facilities, which in aggregate will save us approximately $1.3 million over a period of four years. In connection with the termination of this lease, we removed the corresponding operating lease right-of-use asset and liability balances from our balance sheet and recognized a loss of $0.4 million, which is included in loss on lease termination in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss for the nine months ended January 31, 2020. Additionally, the lease termination released $0.3 million of restricted cash that was pledged as collateral under a letter of credit required by the terminated lease.

Certain of our facility leases require us to pay property taxes, insurance and common area maintenance. While these payments are not included as part of our lease liabilities, they are recognized as variable lease cost in the period they are incurred.

The components of lease cost, which are included in our accompanying unaudited condensed consolidated statements of operations and comprehensive loss as either cost of revenues or selling, general and administrative expense, depending on the leased asset, were as follows (in thousands):

	Three Months Ended January 31, 2020		Nine Months Ended January 31, 2020
Operating lease cost	$	798	$	2,570
Short-term lease cost		83		83
Variable lease cost		155		488
Total lease cost	$	1,036	$	3,141

Cash paid for amounts included in the measurement of lease liabilities for the nine months ended January 31, 2020 was $2.3 million and is included in net cash used in operating activities in our accompanying unaudited condensed consolidated statements of cash flows.

As of January 31, 2020, the maturities of our operating lease liabilities were as follows (in thousands):

Fiscal Year Ending April 30,	Total
2020 (remaining period)	$	735
2021		2,972
2022		2,995
2023		3,010
2024		3,086
Thereafter		21,938
Total lease payments	$	34,736
Less: imputed interest		(11,980	)
Total operating lease liabilities	$	22,756

The balance sheet classification of our operating lease liabilities was as follows (in thousands):

	January 31, 2020
Operating lease liabilities	$	1,172
Operating lease liabilities, less current portion		21,584
Total operating lease liabilities	$	22,756

As of January 31, 2020, the weighted average remaining lease term and weighted average discount rate of our operating leases was 10.7 years and 8.0%, respectively.

4. Stockholders' Equity

9 Months Ended

Jan. 31, 2020

Equity [Abstract]

Stockholders' Equity

Note 4 – Stockholders’ Equity

Termination of Rights Agreement (Series D Preferred Stock)

On March 16, 2006, we entered into a Rights Agreement with Rights Agent named therein, which agreement was subsequently amended and restated on March 16, 2016 (as amended, the “Rights Agreement”). The Rights Agreement was designed to strengthen the ability of our Board of Directors to protect the interests of our stockholders against potential abusive or coercive takeover tactics and to enable all stockholders to receive the full and fair value of their investment in the event that an unsolicited attempt is made to acquire us. Under the Rights Agreement, our Board of Directors declared a dividend of one preferred share purchase right (the “Right”) for each share of our common stock held by our stockholders of record as of the close of business on March 27, 2006, each of which Right entitled the holder thereof to purchase a fraction of a share of our Series D Participating Preferred Stock, par value $0.001 per share, at the price specified in the Rights Agreement. The Rights were only exercisable if a person or group acquired 15% or more of our outstanding common stock or announced a tender offer or exchange offer which, if consummated, would have resulted in ownership by a person or group of 15% or more of our outstanding stock.

On September 23, 2019, the Rights Agreement was further amended to accelerate the scheduled expiration date of the Rights Agreement from the close of business on March 16, 2021 to the close of business on September 23, 2019, and effectively terminate the Rights Agreement and the Rights granted thereunder as of such expiration date. Our Board of Directors elected to terminate the Rights Agreement and the Rights granted thereunder based on their recent evaluation of the effectiveness of, and the need for, a stockholder rights plan and consideration of current corporate governance practices and proxy advisory guidelines. In connection with the termination of the Rights Agreement, we filed a Notification of Removal from Listing and/or Registration under Section 12(b) of the Securities Exchange Act on Form 25 with the SEC on September 23, 2019, in order to withdraw the Rights from registration under Section 12(b) of the Securities Exchange Act of 1934, as amended, which deregistration was effective 90 days after the filing date.

Series E Preferred Stock

Each share of issued and outstanding 10.50% Series E Convertible Preferred Stock $0.001 par value per share (“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 Series E Preferred Stock by the then-current conversion price per share, currently $21.00 per share, rounded down to the nearest whole number. As of January 31, 2020, if all of our issued and outstanding shares of Series E Preferred Stock were converted at the conversion price of $21.00 per share, the holders of our Series E Preferred Stock would receive an aggregate of 1,961,619 shares of our common stock. However, because the conversion price of our Series E Preferred Stock is subject to adjustment from time to time in accordance with the applicable provisions of our certificate of incorporation, we have reserved the maximum number of shares of our common stock that could be issued upon the conversion of our Series E Preferred Stock upon a change of control event assuming our shares of common stock are acquired for consideration of $5.985 per share or less. In this scenario, each outstanding share of our Series E Preferred Stock would be converted into 4.14 shares of our common stock, or 6,826,435 shares in the aggregate.

Dividends

Holders of our Series E Preferred Stock are entitled to receive cumulative dividends at the rate of 10.50% per annum based on the liquidation preference of $25.00 per share, or $2.625 per annum per share, which dividends are payable quarterly in cash, on or about the 1^st day of each January, April, July and October. For the three and nine months ended January 31, 2020 and 2019, we paid aggregate cash dividends of $1.1 million and $3.2 million, respectively, for issued and outstanding shares of our Series E Preferred Stock.

5. Equity Compensation Plans

9 Months Ended

Jan. 31, 2020

Share-based Payment Arrangement [Abstract]

Equity Compensation Plans

Note 5 – Equity Compensation Plans

Stock Incentive Plans

As of January 31, 2020, we had an aggregate of 6,944,895 shares of our common stock reserved for issuance under our stock incentive plans, of which 3,686,129 shares were subject to outstanding stock options and restricted stock units (“RSUs”) and 3,258,766 shares were available for future grants of stock-based awards.

Stock Options

The following summarizes our stock option transaction activity for the nine months ended January 31, 2020:

	Stock Options			Grant Date Weighted Average Exercise Price
		*(in thousands)*
Outstanding at May 1, 2019		3,274		$	7.51
Granted		845		$	5.95
Exercised		(247	)	$	3.72
Canceled or expired		(931	)	$	10.45
Outstanding at January 31, 2020		2,941		$	6.45

Restricted Stock Units

The following summarizes our RSUs transaction activity for the nine months ended January 31, 2020:

	Shares			Weighted Average Grant Date Fair Value
		*(in thousands)*
Outstanding at May 1, 2019		200		$	4.32
Granted		194		$	5.91
Vested		(49	)	$	4.30
Forfeited		(27	)	$	5.15
Outstanding at January 31, 2020		318		$	5.22

Employee Stock Purchase Plan

The Avid Bioservices, Inc. 2010 Employee Stock Purchase Plan (the “ESPP”) is a stockholder-approved plan under which eligible employees are allowed to purchase shares of our common stock through payroll deductions at a price equal to 85% of the lower of the fair market value our common stock as of the first trading day of the offering period or on the last trading day of the six-month offering period. Employee participants are limited to purchase no more than $25,000 of stock in any one calendar year. On October 9, 2019, our stockholders approved an amendment to the ESPP to extend its term for an additional five years to October 21, 2025 and to change the commencement dates of the offering periods from May 1 and November 1 of each year, to January 1 and July 1 of each year.

During the nine months ended January 31, 2020, 47,526 shares of our common stock were purchased under the ESPP at a purchase price of $3.94 per share. As of January 31, 2020, we had 1,148,735 shares of our common stock reserved for issuance under the ESPP.

Stock-Based Compensation

Stock-based compensation expense for the three and nine months ended January 31, 2020 and 2019 was comprised of the following (in thousands):

	Three Months Ended January 31,				Nine Months Ended January 31,
	2020		2019		2020		2019
Cost of revenues	$	248	$	147	$	679	$	317
Selling, general and administrative		347		311		1,170		763
Total stock-based compensation	$	595	$	458	$	1,849	$	1,080

As of January 31, 2020, the total estimated unrecognized compensation cost related to non-vested employee stock options and non- vested RSUs was $4.6 million and $1.4 million, respectively. These costs are expected to be recognized over weighted average vesting periods of 2.82 years and 3.06 years, respectively.

6. Net Loss per Common Share

9 Months Ended

Jan. 31, 2020

Earnings Per Share [Abstract]

Net Loss per Common Share

Note 6 – 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. 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, unvested RSUs, 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, unvested RSUs, shares of common stock expected to be issued under our ESPP, and warrants outstanding during the period are calculated in accordance with the treasury stock method, but are excluded if their effect is anti-dilutive. The potential dilutive effect of our Series E Preferred Stock outstanding during the period is 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. Since the impact of potentially dilutive securities is anti-dilutive during periods of net loss, there was no difference between basic and diluted loss per common share amounts for the three and nine months ended January 31, 2020 and 2019.

The calculation of weighted average diluted shares outstanding excludes the dilutive effect of the following weighted average outstanding stock options, unvested RSUs and shares of common stock expected to be issued under our ESPP as their impact is anti-dilutive during periods of net loss (in thousands):

	Three Months Ended January 31,				Nine Months Ended January 31,
	2020		2019		2020		2019
Stock options		245		117		152		161
RSUs		102		38		73		33
ESPP		–		1		7		10
Total		347		156		232		204

The calculation of weighted average diluted shares outstanding also excludes the following weighted average outstanding stock options, unvested RSUs, 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 (in thousands):

	Three Months Ended January 31,				Nine Months Ended January 31,
	2020		2019		2020		2019
Stock options		2,106		2,779		2,721		2,659
RSUs		–		47		8		16
Warrants		–		–		–		17
Series E Preferred Stock		1,979		1,979		1,979		1,979
Total		4,085		4,805		4,708		4,671

7. Discontinued Operations

9 Months Ended

Jan. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 7 – Discontinued Operations

As a result of the sale of our PS-targeting and r84 technologies in February 2018 and September 2018, respectively (as described in Note 10 of the Notes to the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2019), the abandonment of our remaining research and development assets, and the strategic shift in our corporate direction to focus solely on our CDMO business, the operating results of our former research and development segment have been excluded from continuing operations and reported as income from discontinued operations, net of tax, in the accompanying unaudited condensed consolidated financial statements for all periods presented.

There were no operating results from discontinued operations for the three and nine months ended January 31, 2020. The following table is a reconciliation of the pre-tax income from discontinued operations to the income from discontinued operations, net of tax, as presented in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss for the nine months ended January 31, 2019 (in thousands):

Gain on sale of research and development assets before income taxes ⁽¹⁾	$	1,000
Income tax expense		(261	)
Income from discontinued operations, net of tax	$	739

_____________

⁽¹⁾ The gain on sale of research and development assets before income taxes was recorded in connection with the $1.0 million we received from Oncologie, Inc. (“Oncologie”) under the September 2018 Asset Assignment and Purchase Agreement pursuant to which we sold to Oncologie our r84 technology, which included the assignment of certain licenses, patents and other assets useful and/or necessary for the potential commercialization of the r84 technology.

8. Subsequent Events

9 Months Ended

Jan. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

Note 8 – Subsequent Events

On March 4, 2020, our Board of Directors declared a quarterly cash dividend of $0.65625 per share on our outstanding Series E Preferred Stock. The dividend payment is equivalent to an annualized 10.50% per share, based on the $25.00 per share stated liquidation preference, accruing from January 1, 2020 through March 31, 2020. The cash dividend is payable on April 1, 2020 to holders of the Series E Preferred Stock of record on March 16, 2020.

2. Summary of Significant Accounting Policies (Policies)

9 Months Ended

Jan. 31, 2020

Accounting Policies [Abstract]

Revenue Recognition

Revenue Recognition

Revenue is recognized from services provided under our customer contracts, which we have disaggregated into manufacturing and process development revenue streams.

Manufacturing revenue

Process development revenue

The following table summarizes our manufacturing and process development revenue streams for the three and nine months ended January 31, 2020 and 2019 (in thousands):

	Three Months Ended January 31,				Nine Months Ended January 31,
	2020		2019		2020		2019
Manufacturing revenue	$	11,525	$	10,770	$	40,422	$	28,313
Process development revenue		2,060		3,011		6,730		8,235
Total revenues	$	13,585	$	13,781	$	47,152	$	36,548

During the three and nine months ended January 31, 2020, we recognized revenue of $0.6 million and $13.2 million, respectively, for which the contract liability was recorded in a prior period.

During the three and nine months ended January 31, 2019, we recognized revenue of $2.2 million and $12.2 million, respectively, for which the contract liability was recorded in a prior period.

Leases

Leases

Restricted Cash

Restricted Cash

	January 31, 2020		April 30, 2019		January 31, 2019		April 30, 2018
Cash and cash equivalents	$	30,687	$	32,351	$	27,758	$	42,265
Restricted cash		350		1,150		1,150		1,150
Total cash, cash equivalents and restricted cash	$	31,037	$	33,501	$	28,908	$	43,415

Inventory

Inventory

Property and Equipment

Property and Equipment

All of our property and equipment are located in the U.S. Property and equipment consist of the following (in thousands):

	January 31, 2020			April 30, 2019
Leasehold improvements	$	21,130		$	20,574
Laboratory and manufacturing equipment		14,968			12,858
Computer equipment and software		4,931			4,644
Furniture, fixtures and office equipment		685			528
Construction-in-progress		1,963			1,590
Total property and equipment, gross	$	43,677		$	40,194
Less: accumulated depreciation and amortization		(16,827	)		(14,569	)
Total property and equipment, net	$	26,850		$	25,625

Depreciation and amortization expense for the three and nine months ended January 31, 2020 was $0.8 million and $2.3 million, respectively.

Depreciation and amortization expense for the three and nine months ended January 31, 2019 was $0.7 million and $2.0 million, respectively.

Impairment

Impairment

Stock-Based Compensation

Stock-Based Compensation

Comprehensive Loss

Comprehensive Loss

Fair Value Measurements

Fair Value Measurements

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

Income Taxes

Income Taxes

Recent Accounting Standards Not Yet Adopted

Recent Accounting Standards Not Yet Adopted

2. Summary of Significant Accounting Policies (Tables)

9 Months Ended

Jan. 31, 2020

Accounting Policies [Abstract]

Disaggregation of revenue

	Three Months Ended January 31,				Nine Months Ended January 31,
	2020		2019		2020		2019
Manufacturing revenue	$	11,525	$	10,770	$	40,422	$	28,313
Process development revenue		2,060		3,011		6,730		8,235
Total revenues	$	13,585	$	13,781	$	47,152	$	36,548

Schedule of Restricted Cash

	January 31, 2020		April 30, 2019		January 31, 2019		April 30, 2018
Cash and cash equivalents	$	30,687	$	32,351	$	27,758	$	42,265
Restricted cash		350		1,150		1,150		1,150
Total cash, cash equivalents and restricted cash	$	31,037	$	33,501	$	28,908	$	43,415

Schedule of property and equipment

	January 31, 2020			April 30, 2019
Leasehold improvements	$	21,130		$	20,574
Laboratory and manufacturing equipment		14,968			12,858
Computer equipment and software		4,931			4,644
Furniture, fixtures and office equipment		685			528
Construction-in-progress		1,963			1,590
Total property and equipment, gross	$	43,677		$	40,194
Less: accumulated depreciation and amortization		(16,827	)		(14,569	)
Total property and equipment, net	$	26,850		$	25,625

3. Leases (Tables)

9 Months Ended

Jan. 31, 2020

Lessee Disclosure [Abstract]

Schedule of lease costs

	Three Months Ended January 31, 2020		Nine Months Ended January 31, 2020
Operating lease cost	$	798	$	2,570
Short-term lease cost		83		83
Variable lease cost		155		488
Total lease cost	$	1,036	$	3,141

Schedule of maturities of operating lease liabilities

Fiscal Year Ending April 30,	Total
2020 (remaining period)	$	735
2021		2,972
2022		2,995
2023		3,010
2024		3,086
Thereafter		21,938
Total lease payments	$	34,736
Less: imputed interest		(11,980	)
Total operating lease liabilities	$	22,756

Balance sheet classification of operating lease liabilities

	January 31, 2020
Operating lease liabilities	$	1,172
Operating lease liabilities, less current portion		21,584
Total operating lease liabilities	$	22,756

5. Equity Compensation Plans (Tables)

9 Months Ended

Jan. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of stock option activity

	Stock Options			Grant Date Weighted Average Exercise Price
		*(in thousands)*
Outstanding at May 1, 2019		3,274		$	7.51
Granted		845		$	5.95
Exercised		(247	)	$	3.72
Canceled or expired		(931	)	$	10.45
Outstanding at January 31, 2020		2,941		$	6.45

Schedule of RSU activity

	Shares			Weighted Average Grant Date Fair Value
		*(in thousands)*
Outstanding at May 1, 2019		200		$	4.32
Granted		194		$	5.91
Vested		(49	)	$	4.30
Forfeited		(27	)	$	5.15
Outstanding at January 31, 2020		318		$	5.22

Share-based compensation expense

	Three Months Ended January 31,				Nine Months Ended January 31,
	2020		2019		2020		2019
Cost of revenues	$	248	$	147	$	679	$	317
Selling, general and administrative		347		311		1,170		763
Total stock-based compensation	$	595	$	458	$	1,849	$	1,080

6. Net Loss per Common Share (Tables)

9 Months Ended

Jan. 31, 2020

Earnings Per Share [Abstract]

Antidilutive shares

	Three Months Ended January 31,				Nine Months Ended January 31,
	2020		2019		2020		2019
Stock options		245		117		152		161
RSUs		102		38		73		33
ESPP		–		1		7		10
Total		347		156		232		204

	Three Months Ended January 31,				Nine Months Ended January 31,
	2020		2019		2020		2019
Stock options		2,106		2,779		2,721		2,659
RSUs		–		47		8		16
Warrants		–		–		–		17
Series E Preferred Stock		1,979		1,979		1,979		1,979
Total		4,085		4,805		4,708		4,671

7. Discontinued Operations (Tables)

9 Months Ended

Jan. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Income from discontinued operations

Gain on sale of research and development assets before income taxes ⁽¹⁾	$	1,000
Income tax expense		(261	)
Income from discontinued operations, net of tax	$	739

^[1]

[1]

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

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+ Details

2. Summary of Significant Accounting Policies (Details - Revenue) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Revenues	$ 13,585	$ 13,781	$ 47,152	$ 36,548
Manufacturing Revenue [Member]
Revenues	11,525	10,770	40,422	28,313
Process Development Revenue [Member]
Revenues	$ 2,060	$ 3,011	$ 6,730	$ 8,235

2. Summary of Significant Accounting Policies (Details - Restricted Cash) - USD ($) $ in Thousands	Jan. 31, 2020	Apr. 30, 2019	Jan. 31, 2019	Apr. 30, 2018
Accounting Policies [Abstract]
Cash and cash equivalents	$ 30,687	$ 32,351	$ 27,758	$ 42,265
Restricted cash	350	1,150	1,150	1,150
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows	$ 31,037	$ 33,501	$ 28,908	$ 43,415

2. Summary of Significant Accounting Policies (Details - Property and Equipment) - USD ($) $ in Thousands	Jan. 31, 2020	Apr. 30, 2019
Property and equipment, gross	$ 43,677	$ 40,194
Less: Accumulated depreciation and amortization	(16,827)	(14,569)
Total property and equipment, net	26,850	25,625
Leasehold Improvements [Member]
Property and equipment, gross	21,130	20,574
Laboratory and manufacturing equipment [Member]
Property and equipment, gross	14,968	12,858
Computer Equipment and software [Member]
Property and equipment, gross	4,931	4,644
Furniture, fixtures and office equipment [Member]
Property and equipment, gross	685	528
Construction in Progress [Member]
Property and equipment, gross	$ 1,963	$ 1,590

2. Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019	Apr. 30, 2019	May 02, 2019	Apr. 30, 2018
Revenue recognized previously accrued	$ 6,000	$ 2,200	$ 13,200	$ 12,200
Right-of-use asset	20,437		20,437		$ 0
Operating lease liability	22,756		22,756		22,756
Restricted Cash	350	1,150	350	1,150	1,150		$ 1,150
Interest incurred or capitalized			0		$ 0
Depreciation and amortization	$ 800	$ 700	2,276	2,006
Impairment of long lived assets			$ 0	$ 0
ASC 842 [Member]
Right-of-use asset						$ 23,300
Operating lease liability						$ 25,500

3. Leases (Details - Components of lease) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jan. 31, 2020	Jan. 31, 2020
Lessee Disclosure [Abstract]
Operating lease cost	$ 798	$ 2,570
Short-term lease cost	83	83
Variable lease cost	155	488
Total lease cost	$ 1,036	$ 3,141

3. Leases (Details - Maturities of Operating Lease Liabilities) - USD ($) $ in Thousands	Jan. 31, 2020	Apr. 30, 2019
Lessee Disclosure [Abstract]
2020 (remaining period)	$ 735
2021	2,972
2022	2,995
2023	3,010
2024	3,086
Thereafter	21,938
Total lease payments	34,736
Less: imputed interest	(11,980)
Total operating lease liabilities	$ 22,756	$ 22,756

3. Leases (Details - Lease liabilities) - USD ($) $ in Thousands	Jan. 31, 2020	Apr. 30, 2019
Lessee Disclosure [Abstract]
Operating lease liabilities	$ 1,172	$ 0
Operating lease liabilities, less current portion	21,584	0
Total operating lease liabilities	$ 22,756	$ 22,756

3. Leases (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
3. Leases (Details Narrative) - USD ($) $ in Thousands	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Lessee Disclosure [Abstract]
Loss on lease termination	$ 0	$ 0	$ (355)	$ 0
Operating lease payments			$ 2,300
Weighted average lease term	10 years 8 months 12 days		10 years 8 months 12 days
Weighted average discount rate	8.00%		8.00%

4. Stockholders' Equity (Details Narrative) - Series E Preferred Stock [Member] $ in Thousands	3 Months Ended	9 Months Ended
	Jan. 31, 2020 USD ($) shares	Jan. 31, 2020 USD ($) shares
Common stock to be issued if Series E stock is converted		6,826,435
Each outstanding share that could be converted into common shares	4	4
Dividends paid \| $	$ 1,081	$ 3,244

5. Equity Compensation Plans (Details - Option activity) - Stock Option [Member] shares in Thousands	9 Months Ended
	Jan. 31, 2020 $ / shares shares
Number of Options
Number of Options Outstanding, Beginning \| shares	3,274
Number of Options Granted \| shares	845
Number of Options Exercised \| shares	(247)
Number of Options Canceled or Expired \| shares	(931)
Number of Options Outstanding, Ending \| shares	2,941
Weighted Average Exercise Price
Weighted Average Exercise Price Outstanding, Beginning \| $ / shares	$ 7.51
Weighted Average Exercise Price Granted \| $ / shares	5.95
Weighted Average Exercise Price Exercised \| $ / shares	3.72
Weighted Average Exercise Price Canceled \| $ / shares	10.45
Weighted Average Exercise Price Outstanding, Ending \| $ / shares	$ 6.45

5. Equity Compensation Plans (Details - RSU Activity) - RSUs [Member] shares in Thousands	9 Months Ended
	Jan. 31, 2020 $ / shares shares
RSU Shares
RSUs outstanding, beginning balance \| shares	200
RSUs granted \| shares	194
RSUs vested \| shares	(49)
RSUs forfeited \| shares	(27)
RSUs outstanding, ending balance \| shares	318
Weighted Average Grant Date Fair Value
RSUs outstanding, beginning balance \| $ / shares	$ 4.32
RSUs granted \| $ / shares	5.91
RSUs vested \| $ / shares	4.30
RSUs forfeited \| $ / shares	5.15
RSUs outstanding, ending balance \| $ / shares	$ 5.22

5. Equity Compensation Plans (Details - Share based compensation) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Share based compensation	$ 595	$ 458	$ 1,849	$ 1,080
Cost of revenues [Member]
Share based compensation	248	147	679	317
Selling, general and administrative
Share based compensation	$ 347	$ 311	$ 1,170	$ 763

5. Equity Compensation Plans (Details Narrative) $ / shares in Units, $ in Thousands	9 Months Ended
	Jan. 31, 2020 USD ($) $ / shares shares
Employee Stock Purchase Plan [Member]
Common stock reserved for issuance	1,148,735
Stock issued during period, ESPP	47,526
Price per share, ESPP \| $ / shares	$ 3.94
Stock Option [Member]
Unrecognized compensation costs related to non-vested stock options \| $	$ 4,600
Unrecognized compensation cost weighted average vesting period	2 years 9 months 25 days
RSUs [Member]
Unrecognized compensation cost weighted average vesting period	3 years 22 days
Unrecognized compensation cost related to non-vested RSUs \| $	$ 1,400
Stock Incentive Plans [Member]
Common stock reserved for issuance	6,944,895
Stock Incentive Plans [Member] \| Options and RSU's [Member]
Common stock reserved for issuance	3,686,129
Stock Incentive Plans [Member] \| Future Grants [Member]
Common stock reserved for issuance	3,258,766

6. Net Loss per Common Share (Details - Antidilutive shares) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Dilutive effect of shares on diluted shares outstanding	347	156	232	204
Stock Options
Dilutive effect of shares on diluted shares outstanding	245	117	152	161
RSUs [Member]
Dilutive effect of shares on diluted shares outstanding	102	38	73	33
Employee Stock Purchase Plan [Member]
Dilutive effect of shares on diluted shares outstanding	0	1	7	10

6. Net Loss per Common Share (Details - Antidilutive shares, conversion price) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Dilutive effect of shares on diluted shares outstanding	347	156	232	204
If Converted Method [Member]
Dilutive effect of shares on diluted shares outstanding	4,085	4,805	4,708	4,671
If Converted Method [Member] \| Stock Options [Member]
Dilutive effect of shares on diluted shares outstanding	2,106	2,779	2,721	2,659
If Converted Method [Member] \| RSUs [Member]
Dilutive effect of shares on diluted shares outstanding	0	47	8	16
If Converted Method [Member] \| Warrants
Dilutive effect of shares on diluted shares outstanding	0	0	0	17
If Converted Method [Member] \| Series E Preferred Stock [Member]
Dilutive effect of shares on diluted shares outstanding	1,979	1,979	1,979	1,979

7. Discontinued Operations (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Jan. 31, 2020

Jan. 31, 2019

Jan. 31, 2020

Jan. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Gain on sale of research and development assets before income taxes

$ 0

$ 1,000

^[1]

Income tax expense

(261)

Income from discontinued operations, net of tax

$ 0

$ 739

[1]

- Definition

Amount of tax expense (benefit) related to a discontinued operation. Includes, but is not limited to, tax expense (benefit) related to income (loss) from operations during the phase-out period, tax expense (benefit) related to gain (loss) on disposal, tax expense (benefit) related to gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and tax expense (benefit) related to adjustments of a prior period gain (loss) on disposal.

+ References + Details

- Definition

Amount after tax of income (loss) from a discontinued operation including the portion attributable to the noncontrolling interest. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

+ References + Details