0001683168-21-006162 | 10-Q | XBRL Viewer

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Cover - shares	6 Months Ended
Cover - shares	Oct. 31, 2021	Dec. 01, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Oct. 31, 2021
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--04-30
Entity File Number	001-32839
Entity Registrant Name	AVID BIOSERVICES, INC.
Entity Central Index Key	0000704562
Entity Tax Identification Number	95-3698422
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	2642 Michelle Drive,
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Tustin
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92780
City Area Code	(714)
Local Phone Number	508-6100
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	CDMO
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		61,581,464

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Oct. 31, 2021	Apr. 30, 2021
Current assets:
Cash and cash equivalents	$ 163,675	$ 169,915
Accounts receivable, net	18,137	18,842
Contract assets	3,420	6,112
Inventory	20,310	11,871
Prepaid expenses	1,377	1,064
Total current assets	206,919	207,804
Property and equipment, net	52,496	37,455
Operating lease right-of-use assets	38,223	18,691
Other assets	3,639	1,210
Restricted cash	350	350
Total assets	301,627	265,510
Current liabilities:
Accounts payable	10,005	9,257
Accrued payroll and related costs	5,053	8,794
Contract liabilities	51,865	50,769
Current portion of operating lease liabilities	1,378	1,355
Other current liabilities	1,227	761
Total current liabilities	69,528	70,936
Convertible senior notes, net	139,066	96,949
Operating lease liabilities, less current portion	39,664	19,889
Finance lease liabilities, less current portion	2,264	0
Total liabilities	250,522	187,774
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued and outstanding at October 31, 2021 and April 30, 2021, respectively	0	0
Common stock, $0.001 par value; 150,000 shares authorized; 61,552 and 61,069 shares issued and outstanding at October 31, 2021 and April 30, 2021, respectively	62	61
Additional paid-in capital	600,266	637,534
Accumulated deficit	(549,223)	(559,859)
Total stockholders’ equity	51,105	77,736
Total liabilities and stockholders’ equity	$ 301,627	$ 265,510

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Oct. 31, 2021	Apr. 30, 2021
Statement of Financial Position [Abstract]
Preferred stock par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	150,000	150,000
Common stock, shares issued	61,552	61,069
Common stock, shares outstanding	61,552	61,069

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2021	Oct. 31, 2020
Income Statement [Abstract]
Revenues	$ 26,109	$ 21,064	$ 56,863	$ 46,456
Cost of revenues	16,923	14,646	36,286	31,494
Gross profit	9,186	6,418	20,577	14,962
Operating expenses:
Selling, general and administrative	5,033	4,166	9,493	7,991
Total operating expenses	5,033	4,166	9,493	7,991
Operating income	4,153	2,252	11,084	6,971
Interest and other income, net	73	32	149	47
Interest expense	(704)	0	(1,407)	(4)
Net income	3,522	2,284	9,826	7,014
Comprehensive income	3,522	2,284	9,826	7,014
Series E preferred stock accumulated dividends	0	(1,442)	0	(2,523)
Net income attributable to common stockholders	$ 3,522	$ 842	$ 9,826	$ 4,491
Net income per share attributable to common stockholders:
Basic	$ 0.06	$ 0.01	$ 0.16	$ 0.08
Diluted	$ 0.06	$ 0.01	$ 0.15	$ 0.08
Weighted average common shares outstanding:
Basic	61,414	56,660	61,276	56,592
Diluted	63,602	57,248	63,606	57,073

CONDENSED CONSOLIDATED STATEMENTS of STOCKHOLDERs' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Apr. 30, 2020	$ 2	$ 56	$ 612,909	$ (571,071)	$ 41,896
Beginning balance, shares at Apr. 30, 2020	1,648	56,483
Common stock issued under equity compensation plans		$ 1	882		883
Common stock issued under equity compensation plans, Shares		239
Stock-based compensation expense			1,755		1,755
Net income				7,014	7,014
Ending balance, value at Oct. 31, 2020	$ 2	$ 57	613,384	(564,057)	49,386
Ending balance, shares at Oct. 31, 2020	1,648	56,722
Dividends, Preferred Stock			2,162		2,162
Series E preferred stock dividends paid ($1.3125 per share)			(2,162)		(2,162)
Beginning balance, value at Jul. 31, 2020	$ 2	$ 56	612,822	(566,341)	46,539
Beginning balance, shares at Jul. 31, 2020	1,648	56,601
Common stock issued under equity compensation plans		$ 1	618		619
Common stock issued under equity compensation plans, Shares		121
Stock-based compensation expense			1,025		1,025
Net income				2,284	2,284
Ending balance, value at Oct. 31, 2020	$ 2	$ 57	613,384	(564,057)	49,386
Ending balance, shares at Oct. 31, 2020	1,648	56,722
Series E preferred stock dividends paid ($0.65625 per share)			(1,081)		(1,081)
Beginning balance, value at Apr. 30, 2021		$ 61	637,534	(559,859)	77,736
Beginning balance, shares at Apr. 30, 2021		61,069
Common stock issued under equity compensation plans		$ 1	1,922		1,923
Common stock issued under equity compensation plans, Shares		483
Stock-based compensation expense			3,241		3,241
Net income				9,826	9,826
Ending balance, value at Oct. 31, 2021		$ 62	600,266	(549,223)	51,105
Ending balance, shares at Oct. 31, 2021		61,552
Cumulative-effect adjustment from modified retrospective adoption of ASU 2020-06			(42,431)	810	(41,621)
Beginning balance, value at Jul. 31, 2021		$ 61	597,320	(552,745)	44,636
Beginning balance, shares at Jul. 31, 2021		61,341
Common stock issued under equity compensation plans		$ 1	1,004		1,005
Common stock issued under equity compensation plans, Shares		211
Stock-based compensation expense			1,942		1,942
Net income				3,522	3,522
Ending balance, value at Oct. 31, 2021		$ 62	$ 600,266	$ (549,223)	$ 51,105
Ending balance, shares at Oct. 31, 2021		61,552

- Definition

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

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- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Oct. 31, 2021	Oct. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 9,826	$ 7,014
Adjustments to reconcile net income to net cash used in operating activities:
Stock-based compensation	3,241	1,755
Depreciation and amortization	2,036	1,684
Amortization of debt issuance costs	509	0
Changes in operating assets and liabilities:
Accounts receivable, net	705	(2,962)
Contract assets	2,692	(2,043)
Inventory	(8,439)	1,160
Prepaid expenses and other assets	(2,742)	(293)
Accounts payable	(1,745)	(2,103)
Accrued payroll and related costs	(3,741)	1,831
Contract liabilities	1,096	2,330
Other accrued expenses and liabilities	223	(240)
Net cash provided by operating activities	3,661	8,133
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(11,824)	(2,980)
Net cash used in investing activities	(11,824)	(2,980)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock under equity compensation plans	1,923	883
Repayment of note payable	0	(4,379)
Dividends paid on preferred stock	0	(2,162)
Principal payments on finance lease	0	(93)
Net cash provided by (used in) financing activities	1,923	(5,751)
Net decrease in cash, cash equivalents and restricted cash	(6,240)	(598)
Cash, cash equivalents and restricted cash, beginning of period	170,265	36,612
Cash, cash equivalents and restricted cash, end of period	164,025	36,014
Supplemental disclosures of non-cash activities:
Unpaid purchases of property and equipment	2,493	1,831
Right-of-use assets obtained upon operating lease modification, net	4,554	0
Right-of-use assets obtained in exchange for operating lease obligations	16,093	0
Property and equipment obtained in exchange for finance lease obligation	$ 2,760	$ 0

RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Unaudited) - USD ($) $ in Thousands	Oct. 31, 2021	Apr. 30, 2021	Oct. 31, 2020	Apr. 30, 2020
Statement of Financial Position [Abstract]
Cash and cash equivalents	$ 163,675	$ 169,915	$ 35,664	$ 36,262
Restricted cash	350	350	350	350
Total cash, cash equivalents and restricted cash	$ 164,025	$ 170,265	$ 36,014	$ 36,612

Description of Company and Basis of Presentation

6 Months Ended

Oct. 31, 2021

Accounting Policies [Abstract]

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 development and CGMP manufacturing of biologics for the biotechnology and biopharmaceutical industries.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“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, 2021, as filed with the SEC on June 29, 2021. 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 subsidiary. 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.

Summary of Significant Accounting Policies

6 Months Ended

Oct. 31, 2021

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, 2021.

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 at a specified scale with prescribed delivery dates, where the product is manufactured according to the customer’s specifications and typically includes only one performance obligation. 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 includes only one performance obligation. 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):

Disaggregation of revenue
	Three Months Ended October 31,				Six Months Ended October 31,
	2021		2020		2021		2020
Manufacturing revenues	$	22,013	$	18,449	$	47,688	$	42,512
Process development revenues		4,096		2,615		9,175		3,944
Total revenues	$	26,109	$	21,064	$	56,863	$	46,456

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, 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 six months ended October 31, 2021, we recognized revenue of $7.3 million and $24.8 million, respectively, for which the contract liability was recorded in a prior period.

During the three and six months ended October 31, 2020, we recognized revenue of $6.3 million and $22.7 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.

In addition, our customer contracts generally include provisions entitling us to a cancellation or postponement fee when a customer cancels or postpones its commitments prior to our initiation of services, therefore not utilizing their reserved capacity. The determination of such cancellation and postponement fees are based on the terms stated in the related customer contract but are generally considered substantive for accounting purposes and create an enforceable right and obligation due to us when the cancellation or postponement occurs. Accordingly, we recognize such fees, subject to variable consideration, as revenue upon the cancellation or postponement date utilizing the most likely method.

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, estimating variable consideration, 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.

During the three and six months ended October 31, 2021, we reduced the amount of revenue recognized as a result of estimated variable consideration related to a dispute with a customer over the payment of certain cancellation fees due to us under the terms of the related customer contract which resulted in a decrease in revenues of $11.2 million. We believe we have a contractual right to this amount, but as this contractual right is being disputed by our customer and therefore may be uncollectible, we have not recorded revenue associated with the disputed amount. During the three and six months ended October 31, 2020, changes in estimates for variable consideration resulted in an increase in revenues of $1.7 million and $1.1 million, respectively.

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 October 31, 2021, we do not have any unsatisfied performance obligations for contracts greater than one year.

Restricted Cash

Under the terms of an operating lease related to one of our facilities (Note 4), we are required to maintain a letter of credit as collateral. Accordingly, at October 31, 2021 and April 30, 2021, restricted cash of $0.4 million was pledged as collateral under the letter of credit.

Accounts Receivable

Accounts receivable are primarily comprised of amounts owed to us for services provided under our customer contracts and are recorded at the invoiced amount net of an allowance for doubtful accounts, if necessary. We apply judgement in assessing the ultimate realization of our receivables and we estimate an allowance for doubtful accounts based on various factors, such as the aging of our receivables, historical experience, and the financial condition of our customers.

Based on our analysis of our accounts receivable balance as of April 30, 2021, we determined no allowance for doubtful accounts was deemed necessary.

Based on our analysis of our accounts receivable balance as of October 31, 2021, we determined an allowance for doubtful accounts of $11.2 million was deemed necessary due to a dispute with a customer over the payment of certain cancellation fees due to us under the terms of the related customer contract. The corresponding amount of revenue was reserved in the period. We believe we have a contractual right to this amount, but as this contractual right is being disputed by our customer and therefore may be uncollectible, we have chosen to reserve the disputed amount.

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 (“ROU”) assets, current portion of operating lease liabilities and operating lease liabilities, less current portion in our consolidated balance sheets. ROU 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 ROU 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.

For our finance lease, which has a term greater than one year, an asset is included within property and equipment, net and a lease liability equal to the present value of the minimum lease payments is included in other current liabilities and finance lease liabilities, less current portion in our consolidated balance sheets. The present value of the finance lease payments are calculated using the implicit interest rate in the lease.

We have elected not to apply the recognition requirements of ASC 842 for short-term leases. We have also elected the practical expedient to not separate lease components from non-lease components.

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 asset, 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
Computer equipment and software		3 – 5 years
Furniture, fixtures and office equipment		5 – 10 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 October 31, 2021 and April 30, 2021. All of our property and equipment are located in the United States. Property and equipment consist of the following (in thousands):

Schedule of property and equipment
	October 31, 2021			April 30, 2021
Leasehold improvements	$	23,000		$	23,000
Laboratory and manufacturing equipment		23,998			20,793
Computer equipment and software		5,541			5,541
Furniture, fixtures and office equipment		843			843
Construction-in-progress		22,083			8,372
Total property and equipment, gross		75,465			58,549
Less: accumulated depreciation and amortization		(22,969	)		(21,094	)
Total property and equipment, net	$	52,496		$	37,455

Depreciation and amortization expense for the three and six months ended October 31, 2021 was $1.0 million and $2.0 million, respectively.

Depreciation and amortization expense for the three and six months ended October 31, 2020 was $0.9 million and $1.7 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. If such events or changes in circumstances arise, we compare the carrying amount of the long-lived assets to the estimated future undiscounted cash flows expected to be generated by the long-lived assets. If the long-lived assets are determined to be impaired, any excess of the carrying value of the long-lived assets over its estimated fair value is recognized as an impairment loss. For the six months ended October 31, 2021 and 2020, there were no indicators of impairment of the value of our long-lived assets and no cumulative impairment losses recognized as of October 31, 2021.

Stock-Based Compensation

We account for stock options, restricted stock units, performance stock units and other stock-based awards granted under our equity compensation plans in accordance with the authoritative guidance of ASC 718, Compensation – Stock 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 and performance stock units is measured at the grant date based on the closing market price of our common stock on the date of grant. For restricted stock units, the fair value is recognized as expense on a straight-line basis over the requisite service periods. For performance stock units, which are subject to performance conditions, the fair value is recognized as expense on a straight-line basis over the requisite service periods when the achievement of such performance condition is determined to be probable. If a performance condition is not determined to be probable or is not met, no stock-based compensation expense is recognized, and any previously recognized expense is reversed. Forfeitures are recognized as a reduction of stock-based compensation expense as they occur.

Comprehensive Income

Comprehensive income is the change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income is equal to our net income 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 October 31, 2021 and April 30, 2021, we did not have any Level 2 or Level 3 financial assets and our cash equivalents of $155.4 million and $158.8 million, respectively, were invested in money market funds with one and two major commercial banks, respectively, and carried at fair value based on quoted market prices for identical securities (Level 1 input). We consider the fair value of our convertible senior notes to be a Level 2 financial liability due to limited trading activity of the senior convertible notes. Refer to Note 3, Debt, of the Notes to Condensed Consolidated Financial Statements for further details. We did not have any other Level 2 or Level 3 financial liabilities as of October 31, 2021 and April 30, 2021.

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 as defined by the SEC, 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 timing and the impact this standard will have 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 adopted ASU 2019-12 on May 1, 2021 and the adoption of this standard did not have a material impact on our condensed consolidated financial statements.

In August 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). The amendments in this ASU will eliminate the beneficial conversion and cash conversion accounting models for convertible instruments, as well as, amend the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. The ASU will also modify how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted earnings per share calculation. As a smaller reporting company as defined by the SEC, ASU 2020-06 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2023, which will be our fiscal year 2025 beginning May 1, 2024. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020.

We elected to early adopt ASU 2020-06 on May 1, 2021 using a modified retrospective transition method. Under this transition method, prior period financial information and disclosures are not adjusted and continue to be reported under the accounting standards that were in effect prior to our adoption of ASU 2020-06.

The adoption of ASU 2020-06 resulted in the re-combination of the debt and equity components of our convertible senior notes (Note 3) into a single debt instrument, which resulted in a $42.4 million decrease in additional paid-in capital from the derecognition of the bifurcated equity component, a $41.6 million increase in convertible senior notes from the derecognition of the discount associated with the bifurcated equity component, or debt discount, and $0.8 million decrease to the opening balance of accumulated deficit, representing the cumulative non-cash interest expense recognized related to the amortization of the debt discount associated with the bifurcated equity component of our convertible senior notes. The adoption of this standard also reduces the non-cash interest expense recognized in future periods due to the derecognition of the debt discount associated with the bifurcated equity component of our convertible senior notes. When calculating net income per share of common stock attributable to common stockholders, we use the if-converted method as required under ASU 2020-06 to determine the dilutive effect of our convertible senior notes.

Debt

6 Months Ended

Oct. 31, 2021

Debt Disclosure [Abstract]

Debt

Note 3 – Debt

Convertible Senior Notes

In March 2021, we issued $143.8 million in aggregate principal amount of 1.250% exchangeable senior notes due 2026 (“Convertible Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act, which aggregate principal amount included the $18.8 million issued pursuant to the initial purchasers’ full exercise of their option to purchase additional principal amount of Convertible Notes. The net proceeds we received from the issuance of Convertible Notes was $138.5 million, after deducting initial purchaser discounts and other debt issuance related expenses of $5.3 million.

The Convertible Notes are senior unsecured obligations and accrue interest at a rate of 1.250% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2021. The Convertible Notes mature on March 15, 2026, unless earlier redeemed or repurchased by us or converted at the option of the holders. The Convertible Notes are convertible into cash, shares of our common stock or a combination of cash and shares of our common stock, at our election in the manner and subject to the terms and conditions provided in the indenture (the “Indenture”) governing the Convertible Notes.

The initial conversion rate for the Convertible Notes is approximately 47.1403 shares of our common stock per $1,000 principal amount, which represents an initial conversion price of approximately $21.21 per share of our common stock. The conversion rate is subject to adjustments upon the occurrence of certain events in accordance with the terms of the Indenture. In addition, following certain corporate events that occur prior to the maturity date, we will, in certain circumstances, increase the conversion rate for a holder who elects to convert their Convertible Notes in connection with such a fundamental change, as defined in the Indenture.

Holders of the Convertible Notes may convert their Convertible Notes at their option at any time prior to the close of business on the business day immediately preceding September 15, 2025, only under the following circumstances: (1) During any fiscal quarter commencing after the fiscal quarter ending July 31, 2021, if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) During the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price (as defined in the Indenture) per $1,000 principal amount of the Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the exchange rate on each such trading day; (3) If we call any or all of the Convertible Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; and (4) Upon the occurrence of specified corporate events as described in the Indenture.

On or after September 15, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders at their option may convert their Convertible Notes at any time, regardless of the foregoing circumstances.

We may not redeem the Convertible Notes prior to March 20, 2024. On or after March 20, 2024, the Convertible Notes are redeemable for cash, whole or in part, at our option, if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

If we undergo a fundamental change (as defined in the Indenture), holders may require us to repurchase for cash all or any portion of their Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding the redemption date.

The Indenture contains customary terms and covenants, including that upon certain events of default occurring and continuing, the trustee or the holders of at least 25% in aggregate principle amount of the outstanding Convertible Notes may declare the entire principal of all the Convertible Notes plus accrued and unpaid interest to be immediately due and payable.

As of October 31, 2021, the conditions allowing holders of the Convertible Notes to convert had not been met and, therefore, the Convertible Notes are classified as a long-term liability on the Condensed Consolidated Balance Sheets at October 31, 2021 and April 30, 2021.

In accounting for the issuance of the Convertible Notes, prior to the adoption of ASU 2020-06, we separated the Convertible Notes into debt and equity components. The carrying amount of the debt component on the date of the issuance was $99.7 million and was determined based on a binomial lattice model, which yielded an effective discount rate of 8.78% and was derived with the assistance of a third-party valuation. The equity component was allocated a value of $44.1 million, representing the difference between the par value of the Convertible Notes and the fair value of the debt component. The equity component was not remeasured as long as it continued to meet the conditions for equity classification, and the equity component was recorded as additional paid-in capital within stockholders’ equity on the Condensed Consolidated Balance Sheet at April 30, 2021. The difference between the principal amount of the Convertible Notes and the debt component, or the debt discount, was amortized to interest expense using the effective interest method over the contractual term of the Convertible Notes.

In accounting for the issuance costs related to the Convertible Notes, prior to the adoption of ASU 2020-06, we allocated the total amount incurred to the debt and equity components of the Convertible Notes based on their relative values. Issuance costs attributable to the debt component were $3.7 million and are being amortized to interest expense using the effective interest method over the contractual term of the Convertible Notes. Issuance costs attributable to the equity component were $1.6 million and were netted with the equity component in additional paid-in capital within stockholders’ equity on the Condensed Consolidated Balance Sheet at April 30, 2021.

On May 1, 2021, we elected to early adopt ASU 2020-06 using the modified retrospective transition method. Under such transition method, prior period financial information and disclosures are not adjusted and continue to be reported under the accounting standards that were in effect prior to our adoption of ASU 2020-06.

The adoption of ASU 2020-06 resulted in the re-combination of the debt and equity components of the Convertible Notes into a single debt instrument, which resulted in a $42.4 million decrease in additional paid-in capital from the derecognition of the bifurcated equity component, a $41.6 million increase in convertible senior notes, net from the derecognition of the discount associated with the bifurcated equity component, or debt discount, and $0.8 million decrease to the May 1, 2021 opening balance of accumulated deficit, representing the cumulative non-cash interest expense recognized related to the amortization of the debt discount associated with the bifurcated equity component of the Convertible Notes. Additionally, we derecognized the allocation of the issuance costs to the equity component and all issuance costs related to the Convertible Notes are being amortized to interest expense using the effective interest method over the contractual term of the Convertible Notes which is included in the cumulative adjustment to the opening balance of accumulated deficit.

The net carrying amount of the Convertible Notes is as follows (in thousands):


	October 31, 2021			April 30, 2021
Principal	$	143,750		$	143,750
Unamortized debt discount ⁽¹⁾		–			(43,189	)
Unamortized issuance costs		(4,684	)		(3,612	)
Net carrying amount	$	139,066		$	96,949

The net carrying amount of the equity component of the Convertible Notes is as follows (in thousands):


	October 31, 2021		April 30, 2021
Equity component (debt discount)	$	–	$	44,051
Issuance costs		–		(1,620	)
Net carrying amount ⁽¹⁾	$	–	$	42,431

________________

(1)

As discussed above, the adoption of ASU 2020-06 on May 1, 2021 resulted in the re-combination of the debt and equity components of the Convertible Notes into a single debt instrument. Accordingly, the unamortized debt discount balance and the net carrying amount of the equity component were derecognized.

As of October 31, 2021, the estimated fair value of the Convertible Notes was approximately $226.7 million. The fair value was determined based on the last actively traded price per $100 of the Convertible Notes for the period ended October 31, 2021 (Level 2).

The following table summarizes the interest expense recognized related to the Convertible Notes for the three and six months ended October 31, 2021 (in thousands). There were no Convertible Notes outstanding for the three and six months ended October 31, 2020.

Schedule of Interest expense
	Three Months Ended October 31, 2021		Six Months Ended October 31, 2021
Contractual interest expense	$	449	$	898
Amortization of issuance costs		255		509
Total interest expense	$	704	$	1,407

Capped Call Transactions

In connection with the issuance of the Convertible Notes, we entered into privately negotiated capped call transactions (the “Capped Calls”) with certain financial institution counterparties (the “Option Counterparties”). We used $12.8 million of the net proceeds from the issuance of the Convertible Notes to pay the cost of the Capped Calls. The Capped Calls cover, subject to customary anti-dilution adjustments, the aggregate number of shares of our common stock that initially underlie the Convertible Notes, and are generally expected to reduce the potential dilution of our common stock upon any conversion of the Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap, based on the cap price of the Capped Calls. The cap share price of the Capped Calls is approximately $28.02 per share, which represents a premium of 75% over the last reported sale price of our common stock on March 9, 2021 and is subject to certain adjustments under the terms of the Capped Calls. However, there would nevertheless be dilution upon conversion of the Convertible Notes to the extent that such market price exceeds the capped share price as measured under the terms of the Capped Calls.

We determined that the Capped Calls should be accounted for as a separate transaction from the Convertible Notes and that the Capped Calls met the criteria for equity classification. Therefore, the cost of $12.8 million to purchase the Capped Calls were recorded as a reduction to additional paid-in capital in the Condensed Consolidated Balance Sheet at April 30, 2021. The Capped Calls will not be subsequently remeasured as long as the conditions for equity classification continue to be met.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 1B
-Subparagraph (h)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
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-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Subparagraph (a)
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Leases

6 Months Ended

Oct. 31, 2021

Leases

Leases

Note 4 – Leases

We currently lease certain office, manufacturing, laboratory and warehouse space located in southern California under operating lease agreements. Our leased facilities have original lease terms ranging from 7 to 12 years, contain 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 one of our leases as we considered it reasonably certain that we would exercise such renewal option. In addition, three of our leases provide for periods of free rent, lessor improvements and/or 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 ROU assets and liabilities on our accompanying condensed consolidated balance sheets primarily relate to these facility leases.

Certain of our operating 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 operating lease cost for the three and six months ended October 31, 2021 and 2020 were as follows (in thousands):

Schedule of lease costs
	Three Months Ended October 31,				Six Months Ended October 31,
	2021		2020		2021		2020
Operating lease cost	$	989	$	788	$	1,777	$	1,576
Variable lease cost		201		199		399		320
Short-term lease cost		114		98		216		190
Total lease cost	$	1,304	$	1,085	$	2,392	$	2,086

We also lease certain manufacturing equipment under a finance lease that commenced in October 2021. We did not incur any lease costs under our finance lease for the three and six months ended October 31, 2021.

Supplemental consolidated balance sheet and other information related to our operating and finance leases as of October 31, 2021 and April 30, 2021 were as follows (in thousands, expect weighted average data):


Leases	Classification	October 31, 2021		April 30, 2021
Assets
Operating	Operating lease right-of-use assets	$	38,223	$	18,691
Finance	Property and equipment, net		2,760		–
Total leased assets		$	40,983	$	18,691

Liabilities
Current:
Operating	Current portion of operating lease liabilities	$	1,378	$	1,355
Finance	Other current liabilities		496		–
Non-current:
Operating	Operating lease liabilities, less current portion		39,664		19,889
Finance	Finance lease liabilities, less current portion		2,264		–
Total lease liabilities		$	43,802	$	21,244

Weighted average remaining lease term (years):
Operating leases	12.7	9.6
Finance lease	5.0	–
Weighted average discount rate
Operating leases	3.4%	8.0%
Finance lease	5.3%	–

Cash paid for amounts included in the measurement of our operating lease liabilities was $1.5 million for each of the six months ended October 31, 2021 and 2020, and is included in net cash used in operating activities in our accompanying unaudited condensed consolidated statements of cash flows. We did not have any cash payments associated with our finance lease liability as of October 31, 2021.

As of October 31, 2021, the maturities of our 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,	Operating Leases			Finance Lease			Total
2022 (remaining period)	$	875		$	315		$	1,190
2023		4,279			629			4,908
2024		4,140			629			4,769
2025		4,060			629			4,689
2026		4,167			629			4,796
Thereafter		32,908			314			33,222
Total lease payments		50,429			3,145			53,574
Less: imputed interest		(9,387	)		(385	)		(9,772	)
Total operating lease liabilities	$	41,042		$	2,760		$	43,802

Stockholders’ Equity

6 Months Ended

Oct. 31, 2021

Equity [Abstract]

Stockholders’ Equity

Note 5 – Stockholders’ Equity

Series E Preferred Stock

On April 12, 2021 (the “Redemption Date”), we redeemed all then current outstanding shares of our 10.50% Series E Convertible Preferred Stock (the “Series E Preferred Stock”) at a per share price equal to the $25.00 liquidation amount plus accrued and unpaid dividends up to, but excluding, the Redemption Date. In connection with the completed redemption, we incurred a charge of $3.4 million during the quarter ended April 30, 2021 related to the excess of the redemption value paid upon redemption over the carrying value of our Series E Preferred Stock. As a result of the completed redemption, our Series E Preferred Stock is no longer issued and outstanding.

Holders of our Series E Preferred Stock were 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 were payable quarterly in cash, on or about the first day of each January, April, July and October. For the three and six months ended October 31, 2020, we paid aggregate cash dividends of $1.1 million and $2.2 million, respectively, for issued and outstanding shares of our Series E Preferred Stock. No amounts were paid for the three and six months ended October 31, 2021.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Paragraph 13
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (d)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI http://asc.fasb.org/topic&trid=2208762

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Section 50
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Paragraph 16
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
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+ Details

Equity Compensation Plans

6 Months Ended

Oct. 31, 2021

Share-based Payment Arrangement [Abstract]

Equity Compensation Plans

Note 6 – Equity Compensation Plans

Stock Incentive Plans

As of October 31, 2021, we had an aggregate of 9,234,968 shares of our common stock reserved for issuance under our stock incentive plans, of which 3,711,328 shares were subject to outstanding stock options, restricted stock units (“RSUs”) and performance stock units (“PSUs”) and 5,523,640 shares were available for future grants of stock-based awards.

Stock Options

The following summarizes our stock option transaction activity for the six months ended October 31, 2021:

Schedule of stock option activity
	Stock Options		Grant Date Weighted Average Exercise Price
	(in thousands)
Outstanding at May 1, 2021	3,130		$6.56
Granted	34		$24.08
Exercised	(289	)	$5.67
Canceled or expired	(158	)	$7.42
Outstanding at October 31, 2021	2,717		$6.83

Restricted Stock Units

The following summarizes our RSUs transaction activity for the six months ended October 31, 2021:

Schedule of RSU activity
	Shares		Weighted Average Grant Date Fair Value
	(in thousands)
Outstanding at May 1, 2021	560		$6.52
Granted	295		$25.60
Vested	(166	)	$8.07
Forfeited	(45	)	$14.96
Outstanding at October 31, 2021	644		$14.27

Performance Stock Units

During the six months ended October 31, 2021, the Compensation Committee of the Board of Directors granted performance stock units (“PSUs”) to our officers. The PSUs are subject to annual vesting, as to one-third of the PSUs, over our three fiscal years ending April 30, 2022, 2023 and 2024 (each a “Performance Period”) based upon our attainment of certain predetermined financial metrics for each such Performance Period. Each PSU that vests represents the right to receive one share of our common stock. Depending on the actual financial metrics achieved relative to the target financial metrics for such Performance Periods, the number of PSUs issued could range from 0% to 200% of the target amount. The number of granted shares included in the table below is based on a maximum 200% achievement of each financial metric during each Performance Period (the “Maximum Performance Target”). In the event that a financial metric is achieved at a rate below the Maximum Performance Target, or is not achieved, the corresponding portion of the PSUs that do not vest will be forfeited.

The following summarizes our PSUs transaction activity for the six months ended October 31, 2021:

Schedule of PSU activity
	Shares		Weighted Average Grant Date Fair Value
	(in thousands)
Outstanding at May 1, 2021	–		$ –
Granted	380		$25.36
Vested	–		$ –
Forfeited	(30	)	$26.03
Outstanding at October 31, 2021	350		$25.31

Employee Stock Purchase Plan

The Avid Bioservices, Inc. 2010 Employee Stock Purchase Plan (the “ESPP”) is a stockholder-approved plan under which 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 six-month offering period or on the last trading day of the six-month offering period. During the six months ended October 31, 2021, a total of 28,661 shares of our common stock were purchased under the ESPP at a purchase price of $10.08 per share. As of October 31, 2021, we had 1,047,665 shares of our common stock reserved for issuance under the ESPP.

Stock-Based Compensation

Stock-based compensation expense for the three and six months ended October 31, 2021 and 2020 was comprised of the following (in thousands):

Share-based compensation expense
	Three Months Ended October 31,				Six Months Ended October 31,
	2021		2020		2021		2020
Cost of revenues	$	693	$	372	$	1,161	$	649
Selling, general and administrative		1,249		653		2,080		1,106
Total stock-based compensation	$	1,942	$	1,025	$	3,241	$	1,755

As of October 31, 2021, the total estimated unrecognized compensation cost related to non-vested stock options and RSUs was $4.1 million and $8.6 million, respectively. These costs are expected to be recognized over weighted average vesting periods of 2.1 and 2.8 years, respectively.

As of October 31, 2021, there was $1.4 million of total estimated unrecognized compensation cost related to unvested PSUs associated with the Performance Period ending April 30, 2022. These costs are expected to be recognized over the weighted average vesting period of 0.5 years.

Net Income Per Common Share

6 Months Ended

Oct. 31, 2021

Earnings Per Share [Abstract]

Net Income Per Common Share

Note 7 – Net Income Per Common Share

Basic net income per common share is computed by dividing our net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net income per common share is computed by dividing our net income 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 and PSUs, shares of common stock expected to be issued under our ESPP, Convertible Notes and Series E Preferred Stock outstanding during the period.

Net income attributable to common stockholders represents our net income less 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 PSUs, 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 Convertible Notes and Series E Preferred Stock outstanding during the period are calculated using the if-converted method assuming the conversion of Convertible Notes and 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 per common share computations are as follows (in thousands, expect per share amounts):

Reconciliation of earnings per share
	Three Months Ended October 31,					Six Months Ended October 31,
	2021		2020			2021		2020
Numerator
Net income	$	3,522	$	2,284		$	9,826	$	7,014
Series E preferred stock accumulated dividends		–		(1,442	)		–		(2,523	)
Net income attributable to common stockholders	$	3,522	$	842		$	9,826	$	4,491

Denominator
Weighted average common shares outstanding, basic		61,414		56,660			61,276		56,592
Effect of dilutive securities:
Stock options		1,882		444			1,946		349
RSUs and PSUs		306		140			370		125
ESPP		–		4			14		7
Weighted average common shares outstanding, dilutive		63,602		57,248			63,606		57,073
Net income per share attributable to common stockholders:
Basic	$	0.06	$	0.01		$	0.16	$	0.08
Diluted	$	0.06	$	0.01		$	0.15	$	0.08

The following table presents the potential dilutive securities excluded from the calculation of diluted net income per share for the periods presented as the effect of their inclusion would have been anti-dilutive (in thousands):

Schedule of antidilutive shares
	Three Months Ended October 31,				Six Months Ended October 31,
	2021		2020		2021		2020
Stock options		47		2,048		38		2,216
RSUs and PSUs		247		–		157		–
Convertible Notes		6,776		–		6,776		–
Series E Preferred Stock		–		1,979		–		1,979
Total		7,070		4,027		6,971		4,195

Commitments and Contingencies

6 Months Ended

Oct. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 8 – Commitments and Contingencies

In the ordinary course of business, we are at times subject to various legal proceedings and disputes. We make provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions, if any, are reviewed at least quarterly and adjusted to reflect the impact of any settlement negotiations, judicial and administrative rulings, advice of legal counsel, and other information and events pertaining to a particular case. We currently are not a party to any legal proceedings, the adverse outcome of which, in management’s opinion, individually or in the aggregate, would have a material adverse effect on our consolidated financial condition or results of operations.

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.

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Oct. 31, 2021

Accounting Policies [Abstract]

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):

Disaggregation of revenue
	Three Months Ended October 31,				Six Months Ended October 31,
	2021		2020		2021		2020
Manufacturing revenues	$	22,013	$	18,449	$	47,688	$	42,512
Process development revenues		4,096		2,615		9,175		3,944
Total revenues	$	26,109	$	21,064	$	56,863	$	46,456

During the three and six months ended October 31, 2021, we recognized revenue of $7.3 million and $24.8 million, respectively, for which the contract liability was recorded in a prior period.

During the three and six months ended October 31, 2020, we recognized revenue of $6.3 million and $22.7 million, respectively, for which the contract liability was recorded in a prior period.

Restricted Cash

Restricted Cash

Accounts Receivable

Accounts Receivable

Based on our analysis of our accounts receivable balance as of April 30, 2021, we determined no allowance for doubtful accounts was deemed necessary.

Leases

Leases

We have elected not to apply the recognition requirements of ASC 842 for short-term leases. We have also elected the practical expedient to not separate lease components from non-lease components.

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
Computer equipment and software		3 – 5 years
Furniture, fixtures and office equipment		5 – 10 years

Schedule of property and equipment
	October 31, 2021			April 30, 2021
Leasehold improvements	$	23,000		$	23,000
Laboratory and manufacturing equipment		23,998			20,793
Computer equipment and software		5,541			5,541
Furniture, fixtures and office equipment		843			843
Construction-in-progress		22,083			8,372
Total property and equipment, gross		75,465			58,549
Less: accumulated depreciation and amortization		(22,969	)		(21,094	)
Total property and equipment, net	$	52,496		$	37,455

Depreciation and amortization expense for the three and six months ended October 31, 2021 was $1.0 million and $2.0 million, respectively.

Depreciation and amortization expense for the three and six months ended October 31, 2020 was $0.9 million and $1.7 million, respectively.

Impairment

Impairment

Stock-Based Compensation

Stock-Based Compensation

Comprehensive Income

Comprehensive Income

Fair Value Measurements

Fair Value Measurements

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

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Oct. 31, 2021

Accounting Policies [Abstract]

Disaggregation of revenue

Disaggregation of revenue
	Three Months Ended October 31,				Six Months Ended October 31,
	2021		2020		2021		2020
Manufacturing revenues	$	22,013	$	18,449	$	47,688	$	42,512
Process development revenues		4,096		2,615		9,175		3,944
Total revenues	$	26,109	$	21,064	$	56,863	$	46,456

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
Computer equipment and software		3 – 5 years
Furniture, fixtures and office equipment		5 – 10 years

Schedule of property and equipment

Schedule of property and equipment
	October 31, 2021			April 30, 2021
Leasehold improvements	$	23,000		$	23,000
Laboratory and manufacturing equipment		23,998			20,793
Computer equipment and software		5,541			5,541
Furniture, fixtures and office equipment		843			843
Construction-in-progress		22,083			8,372
Total property and equipment, gross		75,465			58,549
Less: accumulated depreciation and amortization		(22,969	)		(21,094	)
Total property and equipment, net	$	52,496		$	37,455

Debt (Tables)

6 Months Ended

Oct. 31, 2021

Debt Disclosure [Abstract]

Schedule of net carrying amount of the debt component


	October 31, 2021			April 30, 2021
Principal	$	143,750		$	143,750
Unamortized debt discount ⁽¹⁾		–			(43,189	)
Unamortized issuance costs		(4,684	)		(3,612	)
Net carrying amount	$	139,066		$	96,949

Schedule of net carrying amount of the equity component


	October 31, 2021		April 30, 2021
Equity component (debt discount)	$	–	$	44,051
Issuance costs		–		(1,620	)
Net carrying amount ⁽¹⁾	$	–	$	42,431

________________

(1)

Schedule of Interest expense

Schedule of Interest expense
	Three Months Ended October 31, 2021		Six Months Ended October 31, 2021
Contractual interest expense	$	449	$	898
Amortization of issuance costs		255		509
Total interest expense	$	704	$	1,407

Leases (Tables)

6 Months Ended

Oct. 31, 2021

Leases

Schedule of lease costs

Schedule of lease costs
	Three Months Ended October 31,				Six Months Ended October 31,
	2021		2020		2021		2020
Operating lease cost	$	989	$	788	$	1,777	$	1,576
Variable lease cost		201		199		399		320
Short-term lease cost		114		98		216		190
Total lease cost	$	1,304	$	1,085	$	2,392	$	2,086

Balance sheet classification of leases


Leases	Classification	October 31, 2021		April 30, 2021
Assets
Operating	Operating lease right-of-use assets	$	38,223	$	18,691
Finance	Property and equipment, net		2,760		–
Total leased assets		$	40,983	$	18,691

Liabilities
Current:
Operating	Current portion of operating lease liabilities	$	1,378	$	1,355
Finance	Other current liabilities		496		–
Non-current:
Operating	Operating lease liabilities, less current portion		39,664		19,889
Finance	Finance lease liabilities, less current portion		2,264		–
Total lease liabilities		$	43,802	$	21,244

Schedule of maturities of operating lease liabilities


Fiscal Year Ending April 30,	Operating Leases			Finance Lease			Total
2022 (remaining period)	$	875		$	315		$	1,190
2023		4,279			629			4,908
2024		4,140			629			4,769
2025		4,060			629			4,689
2026		4,167			629			4,796
Thereafter		32,908			314			33,222
Total lease payments		50,429			3,145			53,574
Less: imputed interest		(9,387	)		(385	)		(9,772	)
Total operating lease liabilities	$	41,042		$	2,760		$	43,802

Equity Compensation Plans (Tables)

6 Months Ended

Oct. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule of stock option activity

Schedule of stock option activity
	Stock Options		Grant Date Weighted Average Exercise Price
	(in thousands)
Outstanding at May 1, 2021	3,130		$6.56
Granted	34		$24.08
Exercised	(289	)	$5.67
Canceled or expired	(158	)	$7.42
Outstanding at October 31, 2021	2,717		$6.83

Schedule of RSU activity

Schedule of RSU activity
	Shares		Weighted Average Grant Date Fair Value
	(in thousands)
Outstanding at May 1, 2021	560		$6.52
Granted	295		$25.60
Vested	(166	)	$8.07
Forfeited	(45	)	$14.96
Outstanding at October 31, 2021	644		$14.27

Schedule of PSU activity

Schedule of PSU activity
	Shares		Weighted Average Grant Date Fair Value
	(in thousands)
Outstanding at May 1, 2021	–		$ –
Granted	380		$25.36
Vested	–		$ –
Forfeited	(30	)	$26.03
Outstanding at October 31, 2021	350		$25.31

Share-based compensation expense

Share-based compensation expense
	Three Months Ended October 31,				Six Months Ended October 31,
	2021		2020		2021		2020
Cost of revenues	$	693	$	372	$	1,161	$	649
Selling, general and administrative		1,249		653		2,080		1,106
Total stock-based compensation	$	1,942	$	1,025	$	3,241	$	1,755

Net Income Per Common Share (Tables)

6 Months Ended

Oct. 31, 2021

Earnings Per Share [Abstract]

Reconciliation of earnings per share

Reconciliation of earnings per share
	Three Months Ended October 31,					Six Months Ended October 31,
	2021		2020			2021		2020
Numerator
Net income	$	3,522	$	2,284		$	9,826	$	7,014
Series E preferred stock accumulated dividends		–		(1,442	)		–		(2,523	)
Net income attributable to common stockholders	$	3,522	$	842		$	9,826	$	4,491

Denominator
Weighted average common shares outstanding, basic		61,414		56,660			61,276		56,592
Effect of dilutive securities:
Stock options		1,882		444			1,946		349
RSUs and PSUs		306		140			370		125
ESPP		–		4			14		7
Weighted average common shares outstanding, dilutive		63,602		57,248			63,606		57,073
Net income per share attributable to common stockholders:
Basic	$	0.06	$	0.01		$	0.16	$	0.08
Diluted	$	0.06	$	0.01		$	0.15	$	0.08

Schedule of antidilutive shares

Schedule of antidilutive shares
	Three Months Ended October 31,				Six Months Ended October 31,
	2021		2020		2021		2020
Stock options		47		2,048		38		2,216
RSUs and PSUs		247		–		157		–
Convertible Notes		6,776		–		6,776		–
Series E Preferred Stock		–		1,979		–		1,979
Total		7,070		4,027		6,971		4,195

Summary of Significant Accounting Policies (Details - Revenue) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2021	Oct. 31, 2020
Product Information [Line Items]
Revenues	$ 26,109	$ 21,064	$ 56,863	$ 46,456
Manufacturing Revenue [Member]
Product Information [Line Items]
Revenues	22,013	18,449	47,688	42,512
Process Development Revenue [Member]
Product Information [Line Items]
Revenues	$ 4,096	$ 2,615	$ 9,175	$ 3,944

- 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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123351226&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=123359005&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=123359005&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=123359005&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=123351226&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

Summary of Significant Accounting Policies (Details - Useful life)	6 Months Ended
	Oct. 31, 2021
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Useful lives of property and equipment	Shorter of estimated useful life or lease term
Other Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Useful lives of property and equipment	5 – 10 years
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Useful lives of property and equipment	3 – 5 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Useful lives of property and equipment	5 – 10 years

Summary of Significant Accounting Policies (Details - Property and Equipment) - USD ($) $ in Thousands	Oct. 31, 2021	Apr. 30, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 75,465	$ 58,549
Less: Accumulated depreciation and amortization	(22,969)	(21,094)
Total property and equipment, net	52,496	37,455
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	23,000	23,000
Manufactured Product, Other [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	23,998	20,793
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,541	5,541
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	843	843
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 22,083	$ 8,372

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2021	Oct. 31, 2020	Apr. 30, 2021	Apr. 30, 2020
Accounting Policies [Abstract]
Revenue recognized for which the contract liability was recorded in the prior year	$ 7,300	$ 6,300	$ 24,800	$ 22,700
Increase decrease in revenues	11,200	1,700	11,200	1,100
Restricted cash	350	350	350	350	$ 350	$ 350
Allowance for doubtful accounts	11,200		11,200		0
Depreciation and amortization	1,000	$ 900	2,000	1,700
Impairment of long-lived assets			0	$ 0
Cash equivalents	$ 155,400		$ 155,400		$ 158,800

Debt (Details - Debt component) - Convertible Debt Carrying Amount [Member] - USD ($)
$ in Thousands

Oct. 31, 2021

Apr. 30, 2021

Debt Instrument [Line Items]

Principal

$ 143,750

Unamortized debt discount

^[1]

(43,189)

Unamortized issuance costs

(4,684)

(3,612)

Net carrying amount

$ 139,066

$ 96,949

[1]

Debt (Details - Net carrying amount equity component) - Convertible Debt Equity Component [Member] - USD ($)
$ in Thousands

Oct. 31, 2021

Apr. 30, 2021

Debt Instrument [Line Items]

Equity component (debt discount)

$ 0

$ 44,051

Issuance costs

(1,620)

Net carrying amount (1)

^[1]

$ 0

$ 42,431

[1]

Debt (Details - Interest expense) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
Debt (Details - Interest expense) - USD ($) $ in Thousands	Oct. 31, 2021	Oct. 31, 2021	Oct. 31, 2020
Debt Instrument [Line Items]
Amortization of issuance costs		$ 509	$ 0
Convertible Notes [Member]
Debt Instrument [Line Items]
Contractual interest expense	$ 449	898
Amortization of issuance costs	255	509
Total interest expense	$ 704	$ 1,407

Debt (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended	6 Months Ended	10 Months Ended
	Mar. 31, 2021	Mar. 31, 2021	Oct. 31, 2021	Mar. 12, 2021
Debt Instrument [Line Items]
Reduction in additional paid-in-capital			$ (41,621)
Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Debt face amount	$ 143,800	$ 143,800
Proceeds from convertible notes	138,500
Debt issuance costs	5,300	$ 5,300
Interest rate		1.25%
Maturity date				Mar. 15, 2026
Payment of capped calls				$ 12,800
Reduction in additional paid-in-capital	12,800
Convertible Senior Notes [Member] \| Debt Component [Member]
Debt Instrument [Line Items]
Debt face amount	99,700	$ 99,700
Debt issuance costs	3,700	3,700
Effective discount rate				8.78%
Convertible Senior Notes [Member] \| Equity Component [Member]
Debt Instrument [Line Items]
Debt face amount	44,100	44,100
Debt issuance costs	1,600	1,600
Convertible Senior Notes [Member] \| Initial Purchasers Full Exercise [Member]
Debt Instrument [Line Items]
Debt face amount	$ 18,800	$ 18,800
Convertible Notes [Member]
Debt Instrument [Line Items]
Fair value of the Convertible Notes			$ 226,700
Trade price per share			$ 100,000

Leases (Details - Components of lease) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2021	Oct. 31, 2020
Leases
Operating lease cost	$ 989	$ 788	$ 1,777	$ 1,576
Variable lease cost	201	199	399	320
Short-term lease cost	114	98	216	190
Total lease cost	$ 1,304	$ 1,085	$ 2,392	$ 2,086

Leases (Details - Operating leases assets and liabilities) - USD ($) $ in Thousands	Oct. 31, 2021	Apr. 30, 2021
Leases
Operating lease right-of-use assets	$ 38,223	$ 18,691
Finance Property and equipment, net	2,760	0
Total leased assets	40,983	18,691
Operating lease liabilities	1,378	1,355
Finance other current liabilities	496	0
Operating lease liabilities, less current portion	39,664	19,889
Finance lease liabilities, less current portion	2,264	0
Total lease liabilities	$ 43,802	$ 21,244
Weighted average lease term, Operating leases	12 years 8 months 12 days	9 years 7 months 6 days
Weighted average lease term finance lease	5 years
Weighted average discount rate operating leases	3.40%	8.00%
Weighted average discount rate finance lease	5.30%

Leases (Details - Maturities of Operating Lease Liabilities) $ in Thousands	Oct. 31, 2021 USD ($)
2022 (remaining period)	$ 1,190
2023	4,908
2024	4,769
2025	4,689
2026	4,796
Thereafter	33,222
Total lease payments	53,574
Less: imputed interest	(9,772)
Total operating lease liabilities	43,802
Finance Lease [Member]
2022 (remaining period)	315
2023	629
2024	629
2025	629
2026	629
Thereafter	314
Total lease payments	3,145
Less: imputed interest	(385)
Total Financing lease liabilities	2,760
Operating Lease [Member]
2022 (remaining period)	875
2023	4,279
2024	4,140
2025	4,060
2026	4,167
Thereafter	32,908
Total lease payments	50,429
Less: imputed interest	(9,387)
Total operating lease liabilities	$ 41,042

Leases (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
Leases (Details Narrative) - USD ($) $ in Thousands	Oct. 31, 2021	Oct. 31, 2020
Leases
Operating lease payments	$ 1,500	$ 1,500

Stockholders’ Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Oct. 31, 2020	Oct. 31, 2020	Oct. 31, 2021	Apr. 12, 2021
Class of Stock [Line Items]
Dividends paid		$ 2,162
Series E Preferred Stock [Member]
Class of Stock [Line Items]
Redemption value Per share				$ 25.00
Redemption price			$ 25.00
Liquidation preference price per share			$ 2.625
Dividends paid	$ 1,100	$ 2,200

Equity Compensation Plans (Details - Option activity) - Equity Option [Member] shares in Thousands	6 Months Ended
	Oct. 31, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options Outstanding, Beginning \| shares	3,130
Weighted Average Exercise Price Outstanding, Beginning \| $ / shares	$ 6.56
Number of Options Granted \| shares	34
Weighted Average Exercise Price Granted \| $ / shares	$ 24.08
Number of Options Exercised \| shares	(289)
Weighted Average Exercise Price Exercised \| $ / shares	$ 5.67
Number of Options Cancelled or Expired \| shares	(158)
Weighted Average Exercise Price Canceled \| $ / shares	$ 7.42
Number of Options Outstanding, Ending \| shares	2,717
Weighted Average Exercise Price Outstanding, Ending \| $ / shares	$ 6.83

Equity Compensation Plans (Details - RSU Activity) - Restricted Stock Units (RSUs) [Member] shares in Thousands	6 Months Ended
	Oct. 31, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, beginning balance \| shares	560
Weighted Average Exercise Price Outstanding, Beginning \| $ / shares	$ 6.52
RSUs granted \| shares	295
RSUs granted \| $ / shares	$ 25.60
RSUs vested \| shares	(166)
RSUs vested \| $ / shares	$ 8.07
RSUs forfeited \| shares	(45)
RSUs forfeited \| $ / shares	$ 14.96
Outstanding, ending balance \| shares	644
Weighted Average Exercise Price Outstanding, Ending \| $ / shares	$ 14.27

Equity Compensation Plans (Details - PSU Activity) - Performance Stock Units [Member] shares in Thousands	6 Months Ended
	Oct. 31, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, beginning balance \| shares	0
Weighted Average Exercise Price Outstanding, Beginning \| $ / shares	$ 0
PSUs granted \| shares	380
Granted \| $ / shares	$ 25.36
PSUs vested \| shares	0
Vested \| $ / shares	$ 0
PSUs forfeited \| shares	(30)
Forfeited \| $ / shares	$ 26.03
Outstanding, ending balance \| shares	350
Weighted Average Exercise Price Outstanding, Ending \| $ / shares	$ 25.31

Equity Compensation Plans (Details - Share based compensation) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2021	Oct. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share based compensation	$ 1,942	$ 1,025	$ 3,241	$ 1,755
Cost of Sales [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share based compensation	693	372	1,161	649
Selling General And Administrative [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share based compensation	$ 1,249	$ 653	$ 2,080	$ 1,106

Equity Compensation Plans (Details Narrative) $ / shares in Units, $ in Thousands	6 Months Ended
	Oct. 31, 2021 USD ($) $ / shares shares
Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs \| $	$ 1,400
Unrecognized compensation cost weighted average vesting period	6 months
Equity Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs \| $	$ 4,100
Unrecognized compensation cost weighted average vesting period	2 years 1 month 6 days
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs \| $	$ 8,600
Unrecognized compensation cost weighted average vesting period	2 years 9 months 18 days
Stock Incentive Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock reserved for issuance	9,234,968
Stock Incentive Plans [Member] \| Options And Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock reserved for issuance	3,711,328
Stock Incentive Plans [Member] \| Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock reserved for issuance	5,523,640
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock reserved for issuance	1,047,665
Stock issued during period, ESPP	28,661
ESPP weighted average purchase price \| $ / shares	$ 10.08

Net Income (Loss) per Common Share (Details - Reconcilation of per share) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2021	Oct. 31, 2020
Numerator
Net income	$ 3,522	$ 2,284	$ 9,826	$ 7,014
Series E preferred stock accumulated dividends	0	(1,442)	0	(2,523)
Net income attributable to common stockholders	$ 3,522	$ 842	$ 9,826	$ 4,491
Denominator
Weighted average common shares outstanding, basic	61,414	56,660	61,276	56,592
Effect of dilutive securities:
Stock options	1,882	444	1,946	349
RSUs and PSUs	306	140	370	125
ESPP		4	14	7
Weighted average common shares outstanding, dilutive	63,602	57,248	63,606	57,073
Net income per share attributable to common stockholders:
Basic	$ 0.06	$ 0.01	$ 0.16	$ 0.08
Diluted	$ 0.06	$ 0.01	$ 0.15	$ 0.08

Net Income (Loss) per Common Share (Details - Antidilutive shares) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2021	Oct. 31, 2020	Oct. 31, 2021	Oct. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive effect of shares on diluted shares outstanding	7,070	4,027	6,971	4,195
Equity Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive effect of shares on diluted shares outstanding	47	2,048	38	2,216
R S Us And P S Us [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive effect of shares on diluted shares outstanding	247	0	157	0
Convertible Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive effect of shares on diluted shares outstanding	6,776	0	6,776	0
Series E Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive effect of shares on diluted shares outstanding	0	1,979	0	1,979