0001683168-20-002953 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Jul. 31, 2020	Aug. 24, 2020
Cover [Abstract]
Entity Registrant Name	Avid Bioservices, Inc.
Entity Central Index Key	0000704562
Document Type	10-Q
Document Period End Date	Jul. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--04-30
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		56,602,792
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021
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	Jul. 31, 2020	Apr. 30, 2020
CURRENT ASSETS:
Cash and cash equivalents	$ 28,211	$ 36,262
Accounts receivable	14,311	8,606
Contract assets	4,317	3,300
Inventory	9,610	10,883
Prepaid expenses	569	712
Total current assets	57,018	59,763
Property and equipment, net	28,134	27,105
Operating lease right-of-use assets	19,757	20,100
Restricted cash	350	350
Other assets	302	302
TOTAL ASSETS	105,561	107,620
CURRENT LIABILITIES:
Accounts payable	5,724	5,926
Accrued payroll and related costs	3,405	3,019
Contract liabilities	27,123	29,120
Operating lease liabilities	1,268	1,228
Note payable	0	4,379
Other current liabilities	591	808
Total current liabilities	38,111	44,480
Operating lease liabilities, less current portion	20,911	21,244
Total liabilities	59,022	65,724
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred stock, $0.001 par value; 5,000 shares authorized; 1,648 shares issued and outstanding at July 31, 2020 and April 30, 2020, respectively	2	2
Common stock, $0.001 par value; 150,000 shares authorized; 56,601 and 56,483 shares issued and outstanding at July 31, 2020 and April 30, 2020, respectively	56	56
Additional paid-in-capital	612,822	612,909
Accumulated deficit	(566,341)	(571,071)
Total stockholders' equity	46,539	41,896
Total liabilities and stockholders' equity	$ 105,561	$ 107,620

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jul. 31, 2020	Apr. 30, 2020
Statement of Financial Position [Abstract]
Preferred stock par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	1,647,760	1,647,760
Preferred stock, shares outstanding	1,647,760	1,647,760
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	56,601,000	56,483,000
Common stock, shares outstanding	56,601,000	56,483,000

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Income Statement [Abstract]
Revenues	$ 25,392	$ 15,254
Cost of revenues	16,848	14,168
Gross profit	8,544	1,086
Operating expenses:
Selling, general and administrative	3,825	4,459
Operating income (loss)	4,719	(3,373)
Interest and other income, net	11	209
Net income (loss)	4,730	(3,164)
Series E preferred stock accumulated dividends	(1,442)	(1,442)
Net income (loss) attributable to common stockholders	$ 3,288	$ (4,606)
Net income (loss) per share attributable to common stockholders: Basic	$ 0.06	$ (0.08)
Net income (loss) per share attributable to common stockholders: Diluted	$ 0.06	$ (0.08)
Weighted average common shares outstanding: Basic	56,523	56,167
Weighted average common shares outstanding: Diluted	56,892	56,167

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, 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			(1,081)		(1,081)
Exercise of stock options, shares		74
Exercise of stock options, value			258		258
Vesting of restricted stock units, shares		28
Stock-based compensation expense			603		603
Net loss				(3,164)	(3,164)
Ending balance, shares at Jul. 31, 2019	1,648	56,238
Ending balance, value at Jul. 31, 2019	$ 2	$ 56	613,395	(563,769)	49,684
Beginning balance, shares at Apr. 30, 2020	1,648	56,483
Beginning balance, value at Apr. 30, 2020	$ 2	$ 56	612,909	(571,071)	41,896
Series E preferred stock dividends			(1,081)		(1,081)
Common stock issued under Employee Stock Purchase Plan, shares		32
Common stock issued under Employee Stock Purchase Plan, value			179		179
Exercise of stock options, shares		20
Exercise of stock options, value			85		85
Vesting of restricted stock units, shares		66
Stock-based compensation expense			730		730
Net loss				4,730	4,730
Ending balance, shares at Jul. 31, 2020	1,648	56,601
Ending balance, value at Jul. 31, 2020	$ 2	$ 56	$ 612,822	$ (566,341)	$ 46,539

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 4,730	$ (3,164)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	830	726
Stock-based compensation	730	603
Changes in operating assets and liabilities:
Accounts receivable	(5,705)	(849)
Contract asssets	(1,017)	(1,262)
Inventory	1,273	(1,474)
Prepaid expenses	143	(68)
Accounts payable	(1,572)	(410)
Accrued payroll and related costs	386	(310)
Contract liabilities	(1,997)	3,453
Other accrued expenses and liabilities	(74)	287
Net cash used in operating activities	(2,273)	(2,468)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(489)	(38)
Net cash used in investing activities	(489)	(38)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock under employee stock purchase plan	179	0
Proceeds from exercise of stock options	85	258
Repayment of note payable	(4,379)	0
Dividends paid on preferred stock	(1,081)	(1,081)
Principal payments on finance lease	(93)	(78)
Net cash used in financing activities	(5,289)	(901)
Net decrease in cash, cash equivalents and restricted cash	(8,051)	(3,407)
Cash, cash equivalents and restricted cash, beginning of period	36,612	33,501
Cash, cash equivalents and restricted cash, end of period	28,561	30,094
Supplemental disclosures of cash flow information
Unpaid purchases of property and equipment	$ 1,370	$ 1,516

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Unaudited) - USD ($) $ in Thousands	Jul. 31, 2020	Apr. 30, 2020	Jul. 31, 2019	Apr. 30, 2019
Statement of Financial Position [Abstract]
Cash and cash equivalents	$ 28,211	$ 36,262	$ 28,944	$ 32,351
Restricted cash	350	350	1,150	1,150
Total cash, cash equivalents and restricted cash	$ 28,561	$ 36,612	$ 30,094	$ 33,501

1. Description of Company and Basis of Presentation

3 Months Ended

Jul. 31, 2020

Organization And Business Description

Description of Company and Basis of Presentation

Note 1 – Description of Company and Basis of Presentation

We are a dedicated contract development and manufacturing organization (“CDMO”) that provides a comprehensive range of services from process development to Current Good Manufacturing Practices (“CGMP”) clinical and commercial manufacturing, focused on biopharmaceutical drug substances 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, 2020, as filed with the SEC on June 30, 2020. 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.

2. Summary of Significant Accounting Policies

3 Months Ended

Jul. 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, 2020.

Revenue Recognition

Revenue recognized from services provided under our customer contracts are 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. Under these agreements, we are entitled to consideration for progress to date that includes an element of profit margin.

The following table summarizes our manufacturing and process development revenue streams (in thousands):

	Three Months Ended July 31,
	2020		2019
Manufacturing revenues	$	24,063	$	12,908
Process development revenues		1,329		2,346
Total revenues	$	25,392	$	15,254

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 months ended July 31, 2020 and 2019, we recognized revenue of $16.4 million and $6.2 million, respectively, for which the contract liability was recorded in a prior period.

The transaction price for services provided under our customer contracts reflects our best estimates of the amount of consideration to which we are entitled in exchange for providing goods and services to our customers. In determining the transaction price, we considered the different sources of variable consideration including, but not limited to, discounts, credits, refunds, price concessions or other similar items. We have included in the transaction price some or all of an amount of variable consideration, utilizing the most likely method, only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The actual amount of consideration ultimately received may differ.

Management may be required to exercise judgement in estimating revenue to be recognized. Judgement is required in identifying performance obligations, estimating the transaction price, estimating the stand-alone selling prices of identified performance obligations, and estimating the progress towards the satisfaction of performance obligations. If actual results in the future vary from our estimates, the estimates will be adjusted, which will affect revenues in the period that such variances become known.

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. As of July 31, 2020, we do not believe we have any unsatisfied performance obligations for contracts greater than one year.

Restricted Cash

Under the terms of an operating lease related to our facilities (Note 4), we are required to maintain, as collateral, a letter of credit, during the term of such lease. At July 31, 2020 and April 30, 2020, restricted cash of $0.4 million was pledged as collateral under the letter of credit.

Leases

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 sheets. 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. 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.

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, which are generally as follows:

Description		Estimated Useful Life
Leasehold improvements		Shorter of estimated useful life or lease term
Laboratory and manufacturing equipment		5 – 10 years
Furniture, fixtures and office equipment		5 – 10 years
Computer equipment and software		3 – 5 years

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 July 31, 2020 and April 30, 2020. All of our property and equipment are located in the U.S. Property and equipment consist of the following (in thousands):

	July 31, 2020			April 30, 2020
Leasehold improvements	$	21,130		$	21,130
Laboratory and manufacturing equipment		15,414			15,033
Computer equipment and software		5,350			5,334
Furniture, fixtures and office equipment		685			685
Construction-in-progress		4,026			2,564
Total property and equipment, gross	$	46,605		$	44,746
Less: accumulated depreciation and amortization		(18,471	)		(17,641	)
Total property and equipment, net	$	28,134		$	27,105

Depreciation and amortization expense for the three months ended July 31, 2020 and 2019 was $0.8 million and $0.7 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 three months ended July 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 July 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 July 31, 2020 and April 30, 2020, there were no outstanding stock-based awards with market or performance conditions.

Comprehensive Income (Loss)

Comprehensive income (loss) is the change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) is equal to our net income (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 July 31, 2020 and April 30, 2020, 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).

Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments (“ASU 2016-13”). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. As a smaller reporting company, ASU 2016-13 and its subsequent updates are effective for fiscal years beginning after December 15, 2022, which will be our fiscal year 2024 beginning May 1, 2023; however, early adoption is permitted. We are currently evaluating the impact this standard will have on our condensed consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which eliminates, adds and modifies certain disclosure requirements of fair value measurements. Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. We adopted ASU 2018-13 on May 1, 2020. The adoption of this standard did not have a material impact on our condensed consolidated financial statements.

In June 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). The new guidance aligns the requirement for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirement for capitalizing implementation costs incurred to develop or obtain internal-use-software (and hosting arrangements that include an internal-use software license). ASU 2018-15 is effective for fiscal years, and interim periods within those years, beginning after December 14, 2019. We adopted ASU 2018-15 on May 1, 2020. The adoption of this standard did not have a material impact on our condensed consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes by removing certain exceptions and improving consistent application in certain areas of Topic 740. 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 condensed consolidated financial statements and related disclosures.

3. Note Payable

3 Months Ended

Jul. 31, 2020

Debt Disclosure [Abstract]

Note Payable

Note 3 – Note Payable

On April 17, 2020, we entered into a promissory note (the “Note”) with City National Bank, the lender, evidencing an unsecured loan pursuant to the U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security Act of 2020 (the “CARES Act”) of approximately $4.4 million (the “PPP Loan”). We applied for and received the PPP Loan pursuant to the then published PPP qualification and certification requirements.

On April 23, 2020, the SBA, in consultation with the Department of Treasury, issued new guidance that created uncertainty regarding the qualification requirements for a PPP Loan (the “New Guidance”). In light of the New Guidance, we determined it appropriate to pay off the entire amount of the PPP Loan. Accordingly, on May 12, 2020, we paid off in full the principal and interest on the PPP Loan, resulting in the termination of the Note.

4. Leases

3 Months Ended

Jul. 31, 2020

Lessee Disclosure [Abstract]

Leases

Note 4 – Leases

We currently lease office, manufacturing, laboratory 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. 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 included in our accompanying condensed consolidated balance sheets primarily relate to these facility leases.

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 included in our accompanying unaudited condensed consolidated statements of operations and comprehensive income (loss) for the three months ended July 31, 2020 and 2019 were as follows (in thousands):

	Three Months Ended July 31,
	2020		2019
Operating lease cost	$	788	$	892
Variable lease cost		121		156
Short-term lease cost		92		–
Total lease cost	$	1,001	$	1,048

Supplemental consolidated balance sheet and other information related to our operating leases as of July 31, 2020 and April 30, 2020 were as follows (in thousands, expect weighted average data):

	July 31, 2020		April 30, 2020
Assets
Operating lease right-of-use assets	$	19,757	$	20,100
Liabilities
Operating lease liabilities	$	1,268	$	1,228
Operating lease liabilities, less current portion		20,911		21,244
Total operating lease liabilities	$	22,179	$	22,472
Weighted average remaining lease term		10.3 years		10.5 years
Weighted average discount rate		8.0%		8.0%

Cash paid for amounts included in the measurement of lease liabilities for the three months ended July 31, 2020 and 2019 was $0.7 million and $0.8 million, respectively, and is included in net cash used in operating activities in our accompanying unaudited condensed consolidated statements of cash flows.

As of July 31, 2020, the maturities of our operating lease liabilities, which includes those derived from lease renewal options that we considered it reasonably certain that we would exercise, were as follows (in thousands):

Fiscal Year Ending April 30,	Total
2021 (remaining period)	$	2,233
2022		2,995
2023		3,010
2024		3,086
2025		3,171
Thereafter		18,767
Total lease payments	$	33,262
Less: imputed interest		(11,083	)
Total operating lease liabilities	$	22,179

5. Stockholders' Equity

3 Months Ended

Jul. 31, 2020

Equity [Abstract]

Stockholders' Equity

Note 5 – Stockholders’ Equity

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 at any time, at the option of the holder, into a number of shares of our common stock determined by dividing the liquidation preference of $25.00 per share Series E Preferred Stock, plus any accrued and unpaid dividends (whether or not earned or declared), by the then-current conversion price per share, currently $21.00 per share, rounded down to the nearest whole number. As of July 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 1,978,783 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.

The Series E Preferred Stock has no stated maturity date or mandatory redemption and is senior to all of our other securities. We may redeem the Series E Preferred Stock for cash, in whole or in part, by paying the redemption price of $25.00 per share, plus any accrued and unpaid dividends to the redemption date. Holders of the Series E Preferred Stock have no voting rights, except as defined in the Certificate of Designations of Rights and Preferences filed with the Secretary of State of the State of Delaware on February 12, 2014.

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, and are payable quarterly in cash, on or about the first day of each January, April, July and October. For each of the three months ended July 31, 2020 and 2019, we paid aggregate cash dividends of $1.1 million for issued and outstanding shares of our Series E Preferred Stock.

6. Equity Compensation Plans

3 Months Ended

Jul. 31, 2020

Share-based Payment Arrangement [Abstract]

Equity Compensation Plans

Note 6 – Equity Compensation Plans

Stock Incentive Plans

As of July 31, 2020, we had an aggregate of 6,853,052 shares of our common stock reserved for issuance under our stock incentive plans, of which 4,190,908 shares were subject to outstanding stock options and restricted stock units (“RSUs”) and 2,662,144 shares were available for future grants of stock-based awards.

Stock Options

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

	Stock Options			Grant Date Weighted Average Exercise Price
	*(in thousands)*
Outstanding at May 1, 2020		2,896		$	6.20
Granted		770		$	6.97
Exercised		(20	)	$	4.33
Canceled or expired		(30	)	$	7.67
Outstanding at July 31, 2020		3,616		$	6.36

Restricted Stock Units

The following summarizes our RSUs transaction activity for the three months ended July 31, 2020:

	Shares			Weighted Average Grant Date Fair Value
	*(in thousands)*
Outstanding at May 1, 2020		307		$	5.23
Granted		337		$	7.09
Vested		(68	)	$	5.10
Forfeited		(1	)	$	4.77
Outstanding at July 31, 2020		575		$	6.34

Employee Stock Purchase Plan

The Avid Bioservices, Inc. 2010 Employee Stock Purchase Plan (the “ESPP”) is a stockholder-approved plan under which eligible employees can purchase shares of our common stock, based on a percentage of their compensation, subject to certain limits. The purchase price per share is equal to the lower of 85% of the fair market value of our common stock on the first trading day of the offering period or on the last trading day of the six-month offering period. During the three months ended July 31, 2020, a total of 32,197 shares of our common stock were purchased under the ESPP at a purchase price of $5.58 per share. As of July 31, 2020, we had 1,116,538 shares of our common stock reserved for issuance under the ESPP.

Stock-Based Compensation

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

	Three Months Ended July 31,
	2020		2019
Cost of revenues	$	278	$	187
Selling, general and administrative		452		416
Total stock-based compensation	$	730	$	603

As of July 31, 2020, the total estimated unrecognized compensation cost related to non-vested stock options and non-vested RSUs was $6.9 million and $3.5 million, respectively. These costs are expected to be recognized over weighted average vesting periods of 3.02 years and 3.39 years, respectively.

7. Net Income (Loss) per Common Share

3 Months Ended

Jul. 31, 2020

Earnings Per Share [Abstract]

Net Income (Loss) per Common Share

Note 7 – Net Income (Loss) Per Common Share

Basic net income (loss) per common share is computed by dividing our net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing our net income (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, and Series E Preferred Stock outstanding during the period.

Net income (loss) attributable to common stockholders represents our net income (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, and shares of common stock expected to be issued under our ESPP 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. A reconciliation of the numerators and the denominators of the basic and dilutive net income (loss) per common share computations for the three months ended July 31, 2020 and 2019, are as follows (in thousands, expect per share amounts):

	Three Months Ended July 31,
	2020			2019
Numerator
Net income (loss)	$	4,730		$	(3,164	)
Series E preferred stock accumulated dividends		(1,442	)		(1,442	)
Net income (loss) attributable to common stockholders	$	3,288		$	(4,606	)

Denominator
Weighted average common shares outstanding, basic		56,523			56,167
Effect of dilutive securities:
Stock options		264			–
RSUs		101			–
ESPP		4			–
Weighted average common shares outstanding, dilutive		56,892			56,167
Net income (loss) per share, basic	$	0.06		$	(0.08	)
Net income (loss) per share, diluted	$	0.06		$	(0.08	)

The following table presents the securities excluded from the calculation of diluted net income (loss) per share for the three months ended July 31, 2020 and 2019, as the effect of their inclusion would have been anti-dilutive (in thousands):

	Three Months Ended July 31,
	2020		2019
Stock options		2,064		2,965
RSUs		48		88
ESPP		–		2
Series E Preferred Stock		1,979		1,979
Total		4,091		5,034

8. Commitments and Contingencies

3 Months Ended

Jul. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 8 – Commitments and Contingencies

In March 2020, the World Health Organization declared the global novel coronavirus disease (“COVID-19”) outbreak a pandemic and recommended containment and mitigation measures worldwide. Since the announcement we have been monitoring this closely, and although the COVID-19 pandemic has not had a significant impact on our operations to date, the ultimate duration and severity of the outbreak and its impact on the economic environment and our business is highly uncertain. Accordingly, we cannot provide any assurance that the COVID-19 pandemic will not have a material adverse impact on our operations or future results. The extent to which the COVID-19 pandemic may impact our future business, strategic initiatives, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted, including, but not limited to the duration, spread, severity and resurgence of the COVID-19 pandemic, the effects of the COVID-19 pandemic on our customers, vendors, and employees and the remedial actions and stimulus measures adopted by local and federal governments, and the extent to which normal economic and operating conditions can resume.

9. Subsequent Events

3 Months Ended

Jul. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

Note 9 – Subsequent Events

On August 31, 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 July 1, 2020 through September 30, 2020. The cash dividend is payable on October 1, 2020 to holders of the Series E Preferred Stock of record on September 14, 2020.

2. Summary of Significant Accounting Policies (Policies)

3 Months Ended

Jul. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Revenue Recognition

Revenue Recognition

Revenue recognized from services provided under our customer contracts are disaggregated into manufacturing and process development revenue streams.

Manufacturing revenue

Process development revenue

The following table summarizes our manufacturing and process development revenue streams (in thousands):

	Three Months Ended July 31,
	2020		2019
Manufacturing revenues	$	24,063	$	12,908
Process development revenues		1,329		2,346
Total revenues	$	25,392	$	15,254

During the three months ended July 31, 2020 and 2019, we recognized revenue of $16.4 million and $6.2 million, respectively, for which the contract liability was recorded in a prior period.

Restricted Cash

Restricted Cash

Leases

Leases

Inventory

Inventory

Property and Equipment

Property and Equipment

Description		Estimated Useful Life
Leasehold improvements		Shorter of estimated useful life or lease term
Laboratory and manufacturing equipment		5 – 10 years
Furniture, fixtures and office equipment		5 – 10 years
Computer equipment and software		3 – 5 years

	July 31, 2020			April 30, 2020
Leasehold improvements	$	21,130		$	21,130
Laboratory and manufacturing equipment		15,414			15,033
Computer equipment and software		5,350			5,334
Furniture, fixtures and office equipment		685			685
Construction-in-progress		4,026			2,564
Total property and equipment, gross	$	46,605		$	44,746
Less: accumulated depreciation and amortization		(18,471	)		(17,641	)
Total property and equipment, net	$	28,134		$	27,105

Depreciation and amortization expense for the three months ended July 31, 2020 and 2019 was $0.8 million and $0.7 million, respectively.

Impairment

Impairment

Stock-Based Compensation

Stock-Based Compensation

Comprehensive Income (Loss)

Comprehensive Income (Loss)

Fair Value Measurements

Fair Value Measurements

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

Recent Accounting Standards

Recent Accounting Pronouncements

2. Summary of Significant Accounting Policies (Tables)

3 Months Ended

Jul. 31, 2020

Accounting Policies [Abstract]

Disaggregation of revenue

	Three Months Ended July 31,
	2020		2019
Manufacturing revenues	$	24,063	$	12,908
Process development revenues		1,329		2,346
Total revenues	$	25,392	$	15,254

Schedule of estimated useful lives of property

Description		Estimated Useful Life
Leasehold improvements		Shorter of estimated useful life or lease term
Laboratory and manufacturing equipment		5 – 10 years
Furniture, fixtures and office equipment		5 – 10 years
Computer equipment and software		3 – 5 years

Schedule of property and equipment

	July 31, 2020			April 30, 2020
Leasehold improvements	$	21,130		$	21,130
Laboratory and manufacturing equipment		15,414			15,033
Computer equipment and software		5,350			5,334
Furniture, fixtures and office equipment		685			685
Construction-in-progress		4,026			2,564
Total property and equipment, gross	$	46,605		$	44,746
Less: accumulated depreciation and amortization		(18,471	)		(17,641	)
Total property and equipment, net	$	28,134		$	27,105

4. Leases (Tables)

3 Months Ended

Jul. 31, 2020

Lessee Disclosure [Abstract]

Schedule of lease costs

	Three Months Ended July31,
	2020		2019
Operating lease cost	$	788	$	892
Variable lease cost		121		156
Short-term lease cost		92		–
Total lease cost	$	1,001	$	1,048

Balance sheet classification of operating lease liabilities

	July 31, 2020		April 30, 2020
Assets
Operating lease right-of-use assets	$	19,757	$	20,100
Liabilities
Operating lease liabilities	$	1,268	$	1,228
Operating lease liabilities, less current portion		20,911		21,244
Total operating lease liabilities	$	22,179	$	22,472
Weighted average remaining lease term		10.3 years		10.5 years
Weighted average discount rate		8.0%		8.0%

Schedule of maturities of operating lease liabilities

Fiscal Year Ending April 30,	Total
2021 (remaining period)	$	2,233
2022		2,995
2023		3,010
2024		3,086
2025		3,171
Thereafter		18,767
Total lease payments	$	33,262
Less: imputed interest		(11,083	)
Total operating lease liabilities	$	22,179

6. Equity Compensation Plans (Tables)

3 Months Ended

Jul. 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, 2020		2,896		$	6.20
Granted		770		$	6.97
Exercised		(20	)	$	4.33
Canceled or expired		(30	)	$	7.67
Outstanding at July 31, 2020		3,616		$	6.36

Schedule of RSU activity

	Shares			Weighted Average Grant Date Fair Value
	*(in thousands)*
Outstanding at May 1, 2020		307		$	5.23
Granted		337		$	7.09
Vested		(68	)	$	5.10
Forfeited		(1	)	$	4.77
Outstanding at July 31, 2020		575		$	6.34

Share-based compensation expense

	Three Months Ended July 31,
	2020		2019
Cost of revenues	$	278	$	187
Selling, general and administrative		452		416
Total stock-based compensation	$	730	$	603

7. Net Income (Loss) per Common Share (Tables)

3 Months Ended

Jul. 31, 2020

Earnings Per Share [Abstract]

Reconciliation of earnings per share

	Three Months Ended July 31,
	2020			2019
Numerator
Net income (loss)	$	4,730		$	(3,164	)
Series E preferred stock accumulated dividends		(1,442	)		(1,442	)
Net income (loss) attributable to common stockholders	$	3,288		$	(4,606	)

Denominator
Weighted average common shares outstanding, basic		56,523			56,167
Effect of dilutive securities:
Stock options		264			–
RSUs		101			–
ESPP		4			–
Weighted average common shares outstanding, dilutive		56,892			56,167
Net income (loss) per share, basic	$	0.06		$	(0.08	)
Net income (loss) per share, diluted	$	0.06		$	(0.08	)

Schedule of antidilutive shares

	Three Months Ended July 31,
	2020		2019
Stock options		2,064		2,965
RSUs		48		88
ESPP		–		2
Series E Preferred Stock		1,979		1,979
Total		4,091		5,034

2. Summary of Significant Accounting Policies (Details - Revenue) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Revenues	$ 25,392	$ 15,254
Manufacturing Revenue [Member]
Revenues	24,063	12,908
Process Development Revenue [Member]
Revenues	$ 1,329	$ 2,346

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

2. Summary of Significant Accounting Policies (Details - Useful life)	3 Months Ended
	Jul. 31, 2020
Leasehold Improvements [Member]
Useful lives of property and equipment	Shorter of estimated useful life or lease term
Laboratory and Manufacturing Equipment [Member]
Useful lives of property and equipment	5-10 years
Computer equipment and software [Member]
Useful lives of property and equipment	3-5 years
Furniture, fixtures and office equipment [Member]
Useful lives of property and equipment	5-10 years

2. Summary of Significant Accounting Policies (Details - Property and Equipment) - USD ($) $ in Thousands	Jul. 31, 2020	Apr. 30, 2020
Property and equipment, gross	$ 46,605	$ 44,746
Less: Accumulated depreciation and amortization	(18,471)	(17,641)
Total property and equipment, net	28,134	27,105
Leasehold Improvements [Member]
Property and equipment, gross	21,130	21,130
Laboratory and manufacturing equipment [Member]
Property and equipment, gross	15,414	15,033
Computer Equipment and software [Member]
Property and equipment, gross	5,350	5,334
Furniture, fixtures and office equipment [Member]
Property and equipment, gross	685	685
Construction in Progress [Member]
Property and equipment, gross	$ 4,026	$ 2,564

2. Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Apr. 30, 2020	Apr. 30, 2019
Accounting Policies [Abstract]
Revenue recognized for which the contract liability was recorded in the prior year	$ 16,400	$ 6,200
Depreciation and amortization	830	726
Impairment of long-lived assets	0	0
Restricted cash	$ 350	$ 1,150	$ 350	$ 1,150

3. Note Payable (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Apr. 23, 2020	Apr. 17, 2020
Repayment of PPP loan	$ 4,379	$ 0
Promissory note [Member]
Proceeds from PPP loan				$ 4,379
Repayment of PPP loan			$ 4,379
Note payable balance	$ 0

4. Leases (Details - Components of lease) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Lessee Disclosure [Abstract]
Operating lease cost	$ 788	$ 892
Variable lease cost	121	156
Short-term lease cost	92	0
Total lease cost	$ 1,001	$ 1,048

4. Leases (Details - Operating leases assets and liabilities) - USD ($) $ in Thousands	Jul. 31, 2020	Apr. 30, 2020
Lessee Disclosure [Abstract]
Operating lease right-of-use assets	$ 19,757	$ 20,100
Operating lease liabilities	1,268	1,228
Operating lease liabilities, less current portion	20,911	21,244
Total operating lease liabilities	$ 22,179	$ 22,472
Weighted average lease term	10 years 3 months 19 days	10 years 6 months
Weighted average discount rate	8.00%	8.00%

4. Leases (Details - Maturities of Operating Lease Liabilities) - USD ($) $ in Thousands	Jul. 31, 2020	Apr. 30, 2020
Lessee Disclosure [Abstract]
2021 (remaining period)	$ 2,233
2022	2,995
2023	3,010
2024	3,086
2025	3,171
Thereafter	18,767
Total lease payments	33,262
Less: imputed interest	(11,083)
Total operating lease liabilities	$ 22,179	$ 22,472

4. Leases (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
4. Leases (Details Narrative) - USD ($) $ in Thousands	Jul. 31, 2020	Jul. 31, 2019
Lessee Disclosure [Abstract]
Operating lease payments	$ 800	$ 700

5. Stockholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Apr. 30, 2020
Preferred stock par value (in Dollars per share)	$ 0.001		$ 0.001
Preferred stock, shares authorized	5,000,000		5,000,000
Preferred stock, shares issued	1,647,760		1,647,760
Preferred stock, shares outstanding	1,647,760		1,647,760
Dividends paid	$ 1,081	$ 1,081
Change of Control Event [Member]
Conversion price per share	$ 21.00
Common stock to be issued if Series E stock is converted	1,978,783
Current Conversion [Member]
Conversion price per share	$ 5.985
Common stock to be issued if Series E stock is converted	6,826,435
Series E Preferred Stock [Member]
Preferred stock, shares authorized	2,000,000
Preferred stock, shares issued	1,647,760
Preferred stock, shares outstanding	1,647,760
Conversion price per share	$ 21.00
Redemption price	25.00
Liquidation preference price per share	$ 2.625
Dividends paid	$ 1,100

6. Equity Compensation Plans (Details - Option activity) - Equity Option [Member] shares in Thousands	3 Months Ended
	Jul. 31, 2020 $ / shares shares
Number of Options
Number of Options Outstanding, Beginning \| shares	2,896
Number of Options Granted \| shares	770
Number of Options Exercised \| shares	(20)
Number of Options Cancelled or Expired \| shares	(30)
Number of Options Outstanding, Ending \| shares	3,616
Weighted Average Exercise Price
Weighted Average Exercise Price Outstanding, Beginning \| $ / shares	$ 6.20
Weighted Average Exercise Price Granted \| $ / shares	6.97
Weighted Average Exercise Price Exercised \| $ / shares	4.33
Weighted Average Exercise Price Canceled \| $ / shares	7.67
Weighted Average Exercise Price Outstanding, Ending \| $ / shares	$ 6.36

6. Equity Compensation Plans (Details - RSU Activity) - RSUs [Member] shares in Thousands	3 Months Ended
	Jul. 31, 2020 $ / shares shares
RSU Shares
RSUs outstanding, beginning balance \| shares	307
RSUs granted \| shares	337
RSUs vested \| shares	(68)
RSUs forfeited \| shares	(1)
RSUs outstanding, ending balance \| shares	575
Weighted Average Grant Date Fair Value
RSUs outstanding, beginning balance \| $ / shares	$ 5.23
RSUs granted \| $ / shares	7.09
RSUs vested \| $ / shares	5.10
RSUs forfeited \| $ / shares	4.77
RSUs outstanding, ending balance \| $ / shares	$ 6.34

6. Equity Compensation Plans (Details - Share based compensation) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Share based compensation	$ 730	$ 603
Cost of revenues [Member]
Share based compensation	278	187
Selling, general and administrative
Share based compensation	$ 452	$ 416

6. Equity Compensation Plans (Details Narrative) $ / shares in Units, $ in Thousands	3 Months Ended
	Jul. 31, 2020 USD ($) $ / shares shares
Employee Stock Purchase Plan [Member]
Stock issued during period, ESPP	32,197
ESPP weighted average purchase price \| $ / shares	$ 5.58
Equity Option [Member]
Unrecognized compensation costs \| $	$ 6,900
Unrecognized compensation cost weighted average vesting period	3 years 7 days
RSUs [Member]
Unrecognized compensation costs \| $	$ 3,500
Unrecognized compensation cost weighted average vesting period	3 years 4 months 20 days
Stock Incentive Plans [Member]
Stock reserved for issuance	6,853,052
Stock Incentive Plans [Member] \| Options and RSU's [Member]
Stock reserved for issuance	4,190,908
Stock Incentive Plans [Member] \| Future Grants [Member]
Stock reserved for issuance	2,662,144
Employee Stock Purchase Plan [Member]
Stock reserved for issuance	1,116,538

7. Net Income (Loss) per Common Share (Details - Reconcilation of per share) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Earnings Per Share [Abstract]
Net income (loss)	$ 4,730	$ (3,164)
Series E preferred stock accumulated dividends	(1,442)	(1,442)
Net income (loss) attributable to common stockholders	$ 3,288	$ (4,606)
Weighted average common shares outstanding, basic	56,523	56,167
Stock options	264	0
RSUs	101	0
ESPP	4	0
Weighted average common shares outstanding, dilutive	56,892	56,167
Net income (loss) per share, basic	$ 0.06	$ (0.08)
Net income (loss) per share, diluted	$ 0.06	$ (0.08)

7. Net Income (Loss) per Common Share (Details - Antidilutive shares) - shares shares in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Dilutive effect of shares on diluted shares outstanding	4,091	5,034
Stock Options
Dilutive effect of shares on diluted shares outstanding	2,064	2,965
RSUs [Member]
Dilutive effect of shares on diluted shares outstanding	48	88
ESPP [Member]
Dilutive effect of shares on diluted shares outstanding	0	2
Series E Preferred Stock [Member]
Dilutive effect of shares on diluted shares outstanding	1,979	1,979