0001683168-23-004329 | 10-K | XBRL Viewer

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Leases (Details - Maturities of Operating Lease Liabilities) $ in Thousands	Apr. 30, 2023 USD ($)
2024	$ 4,769
2025	4,689
2026	4,796
2027	4,618
2028	4,036
Thereafter	56,418
Total lease payments	79,326
Less: imputed interest	(30,185)
Total lease liabilities	49,141
Finance Lease [Member]
2024	629
2025	629
2026	629
2027	419
2028	0
Thereafter	0
Total lease payments	2,306
Less: imputed interest	(213)
Total financing lease liabilities	2,093
Operating Lease [Member]
2024	4,140
2025	4,060
2026	4,167
2027	4,199
2028	4,036
Thereafter	56,418
Total lease payments	77,020
Less: imputed interest	(29,972)
Total operating lease liabilities	$ 47,048

Summary of Significant Accounting Policies (Details - Cash) - USD ($) $ in Thousands	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021	Apr. 30, 2020
Accounting Policies [Abstract]
Cash and cash equivalents	$ 38,542	$ 126,166	$ 169,915
Restricted cash	350	350	350
Total cash, cash equivalents and restricted cash	$ 38,892	$ 126,516	$ 170,265	$ 36,612

Employee Benefit Plan

12 Months Ended

Apr. 30, 2023

Retirement Benefits [Abstract]

Employee Benefit Plan

Note 9 – Employee Benefit Plan

We maintain a 401(k) Plan pursuant to section 401(k) of the Internal Revenue Code that allows participating employees to defer a portion of their compensation on a tax deferred basis up to the maximum amount permitted by the Internal Revenue Code. We are not required to make matching contributions under the 401(k) Plan. However, we match 50% of employee contributions of up to 6% of their annual eligible compensation. Total expense recognized by us for matching contributions to the 401(k) Plan for the fiscal years ended April 30, 2023, 2022 and 2021 was $0.9 million, $0.6 million and $0.5 million, respectively.

Net Income Per Common Share

12 Months Ended

Apr. 30, 2023

Net income per share attributable to common stockholders:

Net Income Per Common Share

Note 8 – 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 and the impact of Series E Preferred Stock redemption.

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 our 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, except per share amounts):


	Fiscal Year Ended April 30,
	2023		2022		2021
Numerator
Net income	$	560	$	127,672	$	11,212
Series E preferred stock accumulated dividends		–		–		(4,455	)
Impact of Series E preferred stock redemption		–		–		(3,439	)
Net income attributable to common stockholders, basic	$	560	$	127,672	$	3,318
Add interest expense on Convertible Notes, net of tax		–		1,954		–
Net income attributable to common stockholders, diluted	$	560	$	129,626	$	3,318
Denominator
Weighted average basic common shares outstanding		62,268		61,484		58,222
Effect of dilutive securities:
Stock options		1,248		1,830		909
RSUs, PSUs and ESPP		266		384		295
Convertible Notes		–		6,776		–
Weighted average dilutive common shares outstanding		63,782		70,474		59,426

Net income per share attributable to common stockholders:
Basic	$	0.01	$	2.08	$	0.06
Diluted	$	0.01	$	1.84	$	0.06

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

Schedule of antidilutive shares
	Fiscal Year Ended April 30,
	2023		2022		2021
Stock options		46		43		829
RSUs, PSUs and ESPP		253		9		–
Convertible Notes		6,776		–		928
Series E Preferred Stock		–		–		1,864
Total		7,075		52		3,621

Lease - (Details - Supplemental cash flow information) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 4,069	$ 2,376	$ 2,972
Operating cash flows from finance leases	125	47	5
Financing cash flows from finance leases	505	162	93
Non-cash transactions:
Right-of-use assets obtained upon operating lease modifications and reassessments, net	9,267	4,554	0
Right-of-use assets obtained in exchange for operating lease obligations	0	16,093	0
Decapitalization of right-of-use assets upon impairment	89	0	0
Property and equipment obtained in exchange for finance lease obligation	$ 0	$ 2,760	$ 0

Income Taxes (Details - Provision for Income taxes) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021
Income Tax Disclosure [Abstract]
Federal income taxes at statutory rate	$ 421	$ 2,659	$ 2,355
State income taxes, net of valuation allowance	301	605	0
Expiration and adjustments of deferred tax assets	0	0	451
Change in federal valuation allowance	0	(122,703)	2,450
Stock-based compensation including 162M limitations	615	(1,153)	(240)
Research and development credits	0	0	(4,958)
Adjustment for federal benefit of state	0	5,326	0
Permanent differences	66	425	4
Other, net	40	(170)	(62)
Income tax expense (benefit)	$ 1,443	$ (115,011)	$ (0)

Summary of Significant Accounting Policies (Details - Percentage breakdown) - Revenue Benchmark [Member] - Customer Concentration Risk [Member]	12 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021
Halozyme Therapeutics [Member]
Product Information [Line Items]
Customer revenue as a percentage of revenue	53.00%	41.00%	51.00%
I G M Biosciences [Member]
Product Information [Line Items]
Customer revenue as a percentage of revenue		11.00%
Gilead Sciences [Member]
Product Information [Line Items]
Customer revenue as a percentage of revenue	0.00%		16.00%

Stockholders’ Equity (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
Stockholders’ Equity (Details Narrative) - USD ($)	Apr. 30, 2021	Jan. 31, 2021	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021	Apr. 21, 2021
Class of Stock [Line Items]
Stock converted, shares issued
Dividends paid					$ 4,455,000
Proceeds from sale of common stock			$ 0	$ 0	32,141,000
Payment of stock issuance costs					$ 2,359,000
Common Stock [Member]
Class of Stock [Line Items]
Stock converted, shares converted					34,000
Stock converted, shares issued
Dividends paid
Stock issued new, shares					3,833,000
Public offering share price		$ 9.00
Number of shares sold		500,000
Underwritten public offering of common stock			$ 0	0
Common stock shares issued			62,691,885
Common stock shares outstanding			62,691,885
Series E Preferred Stock [Member]
Class of Stock [Line Items]
Stock converted, shares converted	28,168
Conversion price	$ 21.00				$ 21.00
Redemption price			$ 25.00			$ 25.00
Redemption value				3,400,000
Liquidation preference price per share			2.625
Accrued and unpaid dividends per share			$ 0.08021
Dividends paid			$ 0	$ 0	$ 4,500,000
Common Stock [Member]
Class of Stock [Line Items]
Stock converted, shares issued	33,514
Common Stock [Member] \| Public Offering [Member]
Class of Stock [Line Items]
Stock issued new, shares		3,833,335
Proceeds from sale of common stock			34,500,000
Payment of stock issuance costs			$ 2,400,000

Equity Compensation Plans (Details - RSU Activity) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands	12 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding, beginning balance	642
Weighted average exercise price outstanding, beginning	$ 14.89
Granted	780
Granted, weighted average grant date fair value	$ 17.63	$ 25.20	$ 7.29
Vested	(366)
Vested, weighted average grant date fair value	$ 15.09
Forfeited	(50)
Forfeited, weighted average grant date fair value	$ 17.32
Outstanding, ending balance	1,006	642
Weighted average exercise price outstanding, ending	$ 16.83	$ 14.89

Equity Compensation Plans (Details - Share based compensation) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share based compensation	$ 10,978	$ 7,380	$ 3,854
Cost of Sales [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share based compensation	3,876	2,540	1,404
Selling General And Administrative [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share based compensation	$ 7,102	$ 4,840	$ 2,450

Equity Compensation Plans (Tables)

12 Months Ended

Apr. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of fair value assumptions for options


	Fiscal Year Ended April 30,
	2022		2021
Risk-free interest rate		0.86%		0.32%
Expected life (in years)		4.37		4.69
Expected volatility		68.64%		81.42%
Expected dividend yield		–		–

Schedule of stock option activity

Schedule of stock option activity
	Stock Options (in thousands)			Grant Date Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value⁽¹⁾ (in thousands)
Outstanding at May 1, 2022		2,505		$	6.88
Granted		–			–
Exercised		(366	)	$	7.06
Canceled or expired		(60	)	$	9.89
Outstanding at April 30, 2023		2,079		$	6.76		3.69	$	23,654
Vested and expected to vest		2,079		$	6.76		3.69	$	23,654
Exercisable at April 30, 2023		1,595		$	6.52		3.59	$	18,447

______________

⁽¹⁾

Aggregate intrinsic value represents the difference between the exercise price of an option and the closing market price of our common stock on April 28, 2023 (the last trading day of fiscal year 2023), which was $18.05 per share.

Schedule of RSU activity

Schedule of RSU activity
	Shares (in thousands)			Weighted Average Grant Date Fair Value
Outstanding at May 1, 2022		642		$	14.89
Granted		780		$	17.63
Vested		(366	)	$	15.09
Forfeited		(50	)	$	17.32
Outstanding at April 30, 2023		1,006		$	16.83

Schedule of PSU activity

Schedule of PSU activity
	Shares (in thousands)			Weighted Average Grant Date Fair Value
Outstanding at May 1, 2022		233		$	25.31
Granted		608		$	18.09
Vested		(161	)	$	20.75
Forfeited		(158	)	$	20.69
Outstanding at April 30, 2023		522		$	19.70

Schedule of ESPP Fair value assumptions

Schedule of ESPP Fair value assumptions
	Fiscal Year Ended April 30,
	2023		2022		2021
Risk-free interest rate		3.76%		0.15%		0.14%
Expected life (in years)		0.50		0.50		0.50
Expected volatility		68.60%		59.91%		75.50%
Expected dividend yield		–		–		–

Schedule of share-based compensation expense


	Fiscal Year Ended April 30,
	2023		2022		2021
Cost of revenues	$	3,876	$	2,540	$	1,404
Selling, general and administrative expense		7,102		4,840		2,450
Total	$	10,978	$	7,380	$	3,854

Net Income Per Common Share (Details - Reconciliation of per share) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021
Numerator
Net income	$ 560	$ 127,672	$ 11,212
Series E preferred stock accumulated dividends	0	0	(4,455)
Impact of Series E preferred stock redemption	0	0	(3,439)
Net income attributable to common stockholders, basic	560	127,672	3,318
Add interest expense on Convertible Notes, net of tax	0	1,954	0
Net income attributable to common stockholders, diluted	$ 560	$ 129,626	$ 3,318
Denominator
Weighted average basic common shares outstanding	62,268	61,484	58,222
Effect of dilutive securities:
Stock options	1,248	1,830	909
RSUs, PSUs and ESPP	266	384	295
Convertible Notes	0	6,776	0
Weighted average dilutive common shares outstanding	63,782	70,474	59,426
Net income per share attributable to common stockholders:
Basic	$ 0.01	$ 2.08	$ 0.06
Diluted	$ 0.01	$ 1.84	$ 0.06

Summary of Significant Accounting Policies (Details - Useful life)	12 Months Ended
	Apr. 30, 2023
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 – 15 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

Net Income Per Common Share (Tables)

12 Months Ended

Apr. 30, 2023

Net income per share attributable to common stockholders:

Schedule of earnings per share, basic and diluted


	Fiscal Year Ended April 30,
	2023		2022		2021
Numerator
Net income	$	560	$	127,672	$	11,212
Series E preferred stock accumulated dividends		–		–		(4,455	)
Impact of Series E preferred stock redemption		–		–		(3,439	)
Net income attributable to common stockholders, basic	$	560	$	127,672	$	3,318
Add interest expense on Convertible Notes, net of tax		–		1,954		–
Net income attributable to common stockholders, diluted	$	560	$	129,626	$	3,318
Denominator
Weighted average basic common shares outstanding		62,268		61,484		58,222
Effect of dilutive securities:
Stock options		1,248		1,830		909
RSUs, PSUs and ESPP		266		384		295
Convertible Notes		–		6,776		–
Weighted average dilutive common shares outstanding		63,782		70,474		59,426

Net income per share attributable to common stockholders:
Basic	$	0.01	$	2.08	$	0.06
Diluted	$	0.01	$	1.84	$	0.06

Schedule of antidilutive shares

Schedule of antidilutive shares
	Fiscal Year Ended April 30,
	2023		2022		2021
Stock options		46		43		829
RSUs, PSUs and ESPP		253		9		–
Convertible Notes		6,776		–		928
Series E Preferred Stock		–		–		1,864
Total		7,075		52		3,621

Leases (Details - Operating leases assets and liabilities) - USD ($) $ in Thousands	Apr. 30, 2023	Apr. 30, 2022
Leases
Operating lease right-of-use assets	$ 42,772	$ 36,806
Finance Lease - Property and equipment, net	2,529	2,728
Total leased assets	45,301	39,534
Current portion of operating lease liabilities	1,358	2,969
Finance lease - other current liabilities	531	505
Operating lease liabilities, less current portion	45,690	37,886
Finance lease liabilities, less current portion	1,562	2,093
Total lease liabilities	$ 49,141	$ 43,453

Leases (Details - Operating and finance leases)	Apr. 30, 2023	Apr. 30, 2022
Leases
Weighted average lease term, Operating leases	16 years 7 months 6 days	12 years 4 months 24 days
Weighted average lease term, finance lease	3 years 8 months 12 days	4 years 8 months 12 days
Weighted average discount rate, operating leases	6.00%	3.30%
Weighted average discount rate, finance lease	5.30%	5.30%

Employee Benefit Plan (Details Narrative) - USD ($)	12 Months Ended
Employee Benefit Plan (Details Narrative) - USD ($)	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021
Retirement Benefits [Abstract]
Company matching contributions to 401(k) plan	$ 900,000	$ 600,000	$ 500,000

Equity Compensation Plans (Details - Fair value assumptions for options) - Equity Option [Member]	12 Months Ended
	Apr. 30, 2023	Apr. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate	0.86%	0.32%
Expected life (in years)	4 years 4 months 13 days	4 years 8 months 8 days
Expected volatility	68.64%	81.42%
Expected dividend yield	0.00%	0.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iv)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

+ Details

Stockholders’ Equity (Tables)

12 Months Ended

Apr. 30, 2023

Equity [Abstract]

Schedule of common stock reserved for future issuance


	Shares
Stock Incentive Plans		8,338
Employee Stock Purchase Plan		963
Conversion of Convertible Notes		6,776
Total common stock reserved for future issuance		16,077

Equity Compensation Plans (Details - Option activity) - Equity Option [Member]
$ / shares in Units, shares in Thousands, $ in Thousands

12 Months Ended

Apr. 30, 2023

USD ($)

$ / shares

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Number of Options Outstanding, Beginning | shares

2,505

Weighted Average Exercise Price Outstanding, Beginning | $ / shares

$ 6.88

Number of Options Granted | shares

Weighted Average Exercise Price Granted | $ / shares

$ 0

Number of Options Exercised | shares

(366)

Weighted Average Exercise Price Exercised | $ / shares

$ 7.06

Number of Options Cancelled or Expired | shares

(60)

Weighted Average Exercise Price Canceled | $ / shares

$ 9.89

Number of Options Outstanding, Ending | shares

2,079

Weighted Average Exercise Price Outstanding, Ending | $ / shares

$ 6.76

Weighted Average Remaining Contractual Life (in years) Outstanding

3 years 8 months 8 days

Aggregate Intrinsic Value Outstanding | $

$ 23,654

^[1]

Exercisable and expected to vest | shares

2,079

Weighted Average Exercise Price, Exercisable and expected to vest | $ / shares

$ 6.76

Weighted Average Remaining Contractual Life (in years) Vested and expected to vest

3 years 8 months 8 days

Aggregate Intrinsic Value vested and expected to vest | $

$ 23,654

^[1]

Exercisable at period end | shares

1,595

Weighted Average Exercise Price Exercisable, at period end | $ / shares

$ 6.52

Weighted Average Remaining Contractual Life (in years) Exercisable, at period end

3 years 7 months 2 days

Aggregate Intrinsic Value Exercisable at period end | $

$ 18,447

^[1]

[1]	Aggregate intrinsic value represents the difference between the exercise price of an option and the closing market price of our common stock on April 28, 2023 (the last trading day of fiscal year 2023), which was $18.05 per share.

Leases

12 Months Ended

Apr. 30, 2023

Leases

Leases

Note 4 – Leases

We currently lease certain office, manufacturing, laboratory and warehouse space located in Orange County, 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. Multi-year renewal options were included in determining the right-of-use asset and lease liability for three of our leases as we considered it reasonably certain that we would exercise such renewal options. In addition, certain of our leases provide for periods of free rent, lessor improvements and tenant improvement allowances, of which certain of these improvements have been classified as leasehold improvements and/or are being amortized over the shorter of the estimated useful life of the improvements or the remaining life of the lease.

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.

We also lease certain manufacturing equipment under a 5-year finance lease that commenced in the second quarter of fiscal year 2022.

The components of our lease costs for the fiscal years ended April 30, 2023, 2022 and 2021, were as follows (in thousands):

Schedule of lease costs
	Fiscal Year Ended April 30,
	2023		2022		2021
Operating lease cost	$	4,386	$	3,872	$	3,151
Variable lease cost		1,408		944		676
Short-term lease cost		576		515		388
Finance lease costs:
Amortization of right-of-use assets		216		43		82
Interest on lease liabilities		125		47		4
Total lease costs	$	6,711	$	5,421	$	4,301

Supplemental consolidated balance sheet and other information related to our leases as of April 30, 2023 and 2022 were as follows (in thousands, except weighted average data):

Balance sheet classification of leases
			April 30,
Leases	Classification	2023		2022
Assets
Operating	Operating lease right-of-use assets	$	42,772	$	36,806
Finance	Property and equipment, net		2,529		2,728
Total leased assets		$	45,301	$	39,534

Liabilities
Current:
Operating	Current portion of operating lease liabilities	$	1,358	$	2,969
Finance	Other current liabilities		531		505
Non-current:
Operating	Operating lease liabilities, less current portion		45,690		37,886
Finance	Finance lease liabilities, less current portion		1,562		2,093
Total lease liabilities		$	49,141	$	43,453

Operating and finance leases
Weighted average remaining lease term (years):
Operating leases	16.6	12.4
Finance lease	3.7	4.7
Weighted average discount rate
Operating leases	6.0%	3.3%
Finance lease	5.3%	5.3%

Supplemental cash flow information related to our leases were as follows (in thousands):


	Fiscal Year Ended April 30,
	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,069	$	2,376	$	2,972
Operating cash flows from finance leases		125		47		5
Financing cash flows from finance leases		505		162		93

Non-cash transactions:
Right-of-use assets obtained upon operating lease modifications and reassessments, net	$	9,267	$	4,554	$	–
Right-of-use assets obtained in exchange for operating lease obligations	$	–	$	16,093	$	–
Decapitalization of right-of-use assets upon impairment	$	89	$	–	$	–
Property and equipment obtained in exchange for finance lease obligation	$	–	$	2,760	$	–

As of April 30, 2023, 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
2024	$	4,140		$	629		$	4,769
2025		4,060			629			4,689
2026		4,167			629			4,796
2027		4,199			419			4,618
2028		4,036			–			4,036
Thereafter		56,418			–			56,418
Total lease payments	$	77,020		$	2,306		$	79,326
Less: imputed interest		(29,972	)		(213	)		(30,185	)
Total lease liabilities	$	47,048		$	2,093		$	49,141

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 30, 2023	Apr. 30, 2022
Current assets:
Cash and cash equivalents	$ 38,542	$ 126,166
Accounts receivable, net	18,298	20,547
Contract assets	9,609	5,369
Inventory	43,908	26,062
Prepaid expenses and other current assets	2,094	1,879
Total current assets	112,451	180,023
Property and equipment, net	177,369	92,955
Operating lease right-of-use assets	42,772	36,806
Deferred tax assets	113,639	115,082
Other assets	4,473	4,627
Restricted cash	350	350
Total assets	451,054	429,843
Current liabilities:
Accounts payable	24,593	9,504
Accrued compensation and benefits	8,780	8,418
Contract liabilities	37,352	53,798
Current portion of operating lease liabilities	1,358	2,969
Other current liabilities	1,626	1,072
Total current liabilities	73,709	75,761
Convertible senior notes, net	140,623	139,577
Operating lease liabilities, less current portion	45,690	37,886
Finance lease liabilities, less current portion	1,562	2,093
Total liabilities	261,584	255,317
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued and outstanding at respective dates	0	0
Common stock, $0.001 par value; 150,000 shares authorized; 62,692 and 61,807 shares issued and outstanding at respective dates	63	62
Additional paid-in capital	620,224	605,841
Accumulated deficit	(430,817)	(431,377)
Total stockholders’ equity	189,470	174,526
Total liabilities and stockholders’ equity	$ 451,054	$ 429,843

Leases (Details - Components of lease) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021
Leases
Operating lease cost	$ 4,386	$ 3,872	$ 3,151
Variable lease cost	1,408	944	676
Short-term lease cost	576	515	388
Finance lease costs:
Amortization of right-of-use assets	216	43	82
Interest on lease liabilities	125	47	4
Total lease costs	$ 6,711	$ 5,421	$ 4,301

Equity Compensation Plans (Details Narrative) - USD ($)	12 Months Ended
Equity Compensation Plans (Details Narrative) - USD ($)	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021	Oct. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock reserved for issuance	16,077,000
Equity Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross	0
Proceeds from exercise of stock options	$ 2,600,000	$ 2,700,000	$ 3,600,000
Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted-average grant date fair value of options granted	$ 0	$ 13.09	$ 4.74
Aggregate intrinsic value of stock options exercised	$ 3,500,000	$ 8,100,000	$ 3,900,000
Unrecognized compensation cost weighted average vesting period	11 months 26 days
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation cost weighted average vesting period	2 years 6 months 10 days
Weighted average grant date fair value, other than options	$ 17.63	$ 25.20	$ 7.29
Fair value of RSUs vested	$ 6,300,000	$ 5,500,000	$ 700,000
Unrecognized compensation cost	$ 15,400,000
Performance Stock Units [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation cost weighted average vesting period	1 year 4 months 20 days
Weighted average grant date fair value, other than options	$ 18.09	$ 25.36	$ 0
Fair value of RSUs vested	$ 3,300,000	$ 2,100,000	$ 0
Unrecognized compensation cost	$ 10,300,000
Employee Stock Purchase Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Weighted average grant date fair value, other than options	$ 4.93	$ 8.62	$ 3.17
Stock issued during period, ESPP	68,646	44,364	72,409
ESPP weighted average purchase price	$ 12.22	$ 14.50	$ 5.84
Plan 2018 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock reserved for issuance				3,400,000
Stock Incentive Plans [Member] \| Plan 2018 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock reserved for issuance	8,337,807
Stock Incentive Plans [Member] \| Options And Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock reserved for issuance	3,926,550
Stock Incentive Plans [Member] \| Future Grants [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock reserved for issuance	4,411,257

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Apr. 30, 2023	Apr. 30, 2022
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	62,692	61,807
Common stock, shares outstanding	62,692	61,807

Income Taxes (Tables)

12 Months Ended

Apr. 30, 2023

Income Tax Disclosure [Abstract]

Schedule of provision for income taxes

Schedule of provision for income taxes
	2023		2022			2021
Federal income taxes at statutory rate	$	421	$	2,659		$	2,355
State income taxes, net of valuation allowance		301		605			–
Expiration and adjustments of deferred tax assets		–		–			451
Change in federal valuation allowance		–		(122,703	)		2,450
Stock-based compensation including 162M limitations		615		(1,153	)		(240	)
Research and development credits		–		–			(4,958	)
Adjustment for federal benefit of state		–		5,326			–
Permanent differences		66		425			4
Other, net		40		(170	)		(62	)
Income tax expense (benefit)	$	1,443	$	(115,011	)	$	–

Schedule of deferred tax assets and deferred tax liabilities


	2023			2022
Net operating losses	$	112,194		$	99,710
Research and development credits		5,569			5,550
Stock-based compensation		2,589			2,710
Deferred revenue		2,420			5,494
Lease liabilities		12,742			11,107
Accrued liabilities		2,248			785
Accrued compensation		1,781			1,705
Total deferred tax assets		139,543			127,061
Less valuation allowance		–			–
Total deferred tax assets, net of valuation allowance		139,543			127,061
Deferred tax liabilities:
Fixed assets		(14,320	)		(1,972	)
ROU assets		(11,584	)		(10,007	)
Total deferred tax liabilities		(25,904	)		(11,979	)
Net deferred tax assets	$	113,639		$	115,082

Schedule of unrecognized tax positions

Schedule of unrecognized tax positions
	2023			2022
Unrecognized tax positions, beginning of year	$	5,133		$	1,600
Gross (decrease) increase – prior period tax positions		(1,693	)		3,533
Unrecognized tax positions, end of year	$	3,440		$	5,133

Equity Compensation Plans

12 Months Ended

Apr. 30, 2023

Share-Based Payment Arrangement [Abstract]

Equity Compensation Plans

Note 6 – Equity Compensation Plans

Stock Incentive Plans

The Avid Bioservices, Inc. 2018 Omnibus Incentive Plan (the “2018 Plan”) is a stockholder-approved plan, which provides, among other things, the ability for us to grant stock options, restricted stock units, performance stock units and other forms of stock-based awards. The 2018 Plan replaced our 2009, 2010 and 2011 Stock Incentive Plans (the “Prior Plans”). However, any awards outstanding under the Prior Plans as of the 2018 Plan’s effective date continue to remain subject to and be paid under the applicable Prior Plan, and any shares subject to outstanding awards under the Prior Plans that subsequently expire, terminate, or are surrendered or forfeited for any reason without issuance of shares automatically become available for issuance under the 2018 Plan. In October 2021, our stockholders approved an amendment to the 2018 Plan to increase the number of authorized shares reserved for issuance under the 2018 plan by 3.4 million shares.

The 2018 Plan and the Prior Plans are collectively referred to as the “Stock Plans”. As of April 30, 2023, we had an aggregate of 8,337,807 shares of our common stock reserved for issuance under the Stock Plans, of which 3,926,550 shares were subject to outstanding stock options, restricted stock units and performance stock units and 4,411,257 shares were available for future grants of stock-based awards.

Stock Options

We ceased granting stock options during fiscal 2022. Stock options previously granted under our Stock Plans were granted at an exercise price not less than the fair market value of our common stock on the date of grant. Stock options granted to employees generally vest over a four-year period from the date of grant and stock options granted to non-employee directors generally vest over a period of one to three years from the date of grant. Stock options granted under the 2018 Plan have a contractual term of seven years; however, the maximum contractual term of any stock option granted under the Stock Plans is ten years.

The estimated fair value of stock options is measured at the grant date, using a fair value-based method, such as a Black-Scholes option valuation model, and is amortized as stock-based compensation expense on a straight-line basis over the requisite service period of the award, which is generally the vesting period. The use of a valuation model requires us to make certain estimates and assumptions with respect to selected model inputs. The expected volatility is based on the daily historical volatility of our common stock covering the estimated expected term. The expected term of options granted reflects actual historical exercise activity and assumptions regarding future exercise activity of unexercised, outstanding options. The risk-free interest rate is based on U.S. Treasury notes with terms within the contractual life of the option at the time of grant. The expected dividend yield assumption is based on our expectation of future dividend payouts. We have never declared or paid any cash dividends on our common stock and currently do not anticipate paying such cash dividends.

There were no stock options granted during the fiscal year ended April 30, 2023. The grant date fair value for stock options granted during the fiscal years ended April 30, 2022 and 2021 were based on the following weighted-average assumptions used within the Black-Scholes option valuation model:


	Fiscal Year Ended April 30,
	2022		2021
Risk-free interest rate		0.86%		0.32%
Expected life (in years)		4.37		4.69
Expected volatility		68.64%		81.42%
Expected dividend yield		–		–

The following summarizes our stock option transaction activity for the fiscal year ended April 30, 2023:

Schedule of stock option activity
	Stock Options (in thousands)			Grant Date Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value⁽¹⁾ (in thousands)
Outstanding at May 1, 2022		2,505		$	6.88
Granted		–			–
Exercised		(366	)	$	7.06
Canceled or expired		(60	)	$	9.89
Outstanding at April 30, 2023		2,079		$	6.76		3.69	$	23,654
Vested and expected to vest		2,079		$	6.76		3.69	$	23,654
Exercisable at April 30, 2023		1,595		$	6.52		3.59	$	18,447

______________

⁽¹⁾

The weighted-average grant date fair value of stock options granted during the fiscal years ended April 30, 2022 and 2021 was $13.09 and $4.74 per share, respectively. There were no stock options granted during the fiscal year ended April 30, 2023.

The aggregate intrinsic value of stock options exercised during the fiscal years ended April 30, 2023, 2022 and 2021 was $3.5 million, $8.1 million and $3.9 million, respectively. Cash received from stock options exercised during fiscal years ended April 30, 2023, 2022 and 2021 totaled $2.6 million, $2.7 million and $3.6 million, respectively.

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

As of April 30, 2023, the total estimated unrecognized compensation cost related to non-vested stock options was $1.3 million. This cost is expected to be recognized over a weighted average vesting period of 0.99 years based on current assumptions.

Restricted Stock

A restricted stock unit (“RSU”) represents the right to receive one share of our common stock upon the vesting of such unit. RSUs granted to employees generally vest over a four-year period from the date of grant and RSUs granted to non-employee directors generally vest over a period of one to three years from the date of grant. The estimated fair value of RSUs is based on the closing market value of our common stock on the date of grant and is amortized as stock-based compensation expense on a straight-line basis over the period of vesting.

The following summarizes our RSUs transaction activity for the fiscal year ended April 30, 2023:

Schedule of RSU activity
	Shares (in thousands)			Weighted Average Grant Date Fair Value
Outstanding at May 1, 2022		642		$	14.89
Granted		780		$	17.63
Vested		(366	)	$	15.09
Forfeited		(50	)	$	17.32
Outstanding at April 30, 2023		1,006		$	16.83

The weighted-average grant date fair value of RSUs granted during the fiscal years ended April 30, 2023, 2022 and 2021 was $17.63, $25.20 and $7.29 per share, respectively.

The total fair value of RSUs vested during the fiscal years ended April 30, 2023, 2022 and 2021 was $6.3 million, $5.5 million and $0.7 million, respectively.

As of April 30, 2023, the total estimated unrecognized compensation cost related to non-vested RSUs was $15.4 million. This cost is expected to be recognized over a weighted average vesting period of 2.53 years.

Performance Stock Units

The Compensation Committee of the Board of Directors grants PSUs to our executives. The PSUs are subject to annual vesting over three consecutive fiscal year performance periods with the first one-third vesting on April 30 of the year following the grant date, and each successive one-third vesting on April 30 of the following two years respectively (each a “Performance Period”). Each PSU that vests represent the right to receive one share of our common stock. The number of shares that will vest for each Performance Period, if any, is based upon the attainment of certain predetermined financial metrics for each such Performance Period. 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”). If 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 are forfeited.

The following summarizes our PSUs transaction activity for the fiscal year ended April 30, 2023:

Schedule of PSU activity
	Shares (in thousands)			Weighted Average Grant Date Fair Value
Outstanding at May 1, 2022		233		$	25.31
Granted		608		$	18.09
Vested		(161	)	$	20.75
Forfeited		(158	)	$	20.69
Outstanding at April 30, 2023		522		$	19.70

The weighted-average grant date fair value of PSUs granted during the fiscal years ended April 30, 2023 and 2022, was $18.09 and $25.36 per share, respectively. There were no PSUs granted during the fiscal year ended April 30, 2021.

The total fair value of PSUs vested during the fiscal years ended April 30, 2023 and 2022 was $3.3 million and $2.1 million, respectively. No PSUs vested during the fiscal year ended April 30, 2021.

As of April 30, 2023, there was $10.3 million of total estimated unrecognized compensation cost related to non-vested PSUs associated with the Performance Periods ending April 30, 2024 and 2025 based on the Maximum Performance Target achievement of each financial metric during such Performance Periods. This cost is expected to be recognized over a weighted average vesting period of 1.39 years, however, we will assess the likelihood of achieving the predetermined financial metrics associated with each Performance Period on a quarterly basis and the expense recognized, if any, will be adjusted accordingly.

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. Offering Periods commence on or about the first day of January and July of each year.

During the fiscal years ended April 30, 2023, 2022 and 2021, a total of 68,646, 44,364 and 72,409 shares of our common stock were purchased, respectively, under the ESPP at a weighted average purchase price per share of $12.22, $14.50 and $5.84, respectively. As of April 30, 2023, we had 963,316 shares of our common stock reserved for issuance under the ESPP.

The fair value of the shares purchased under the ESPP was determined using a Black-Scholes option valuation model (see explanation of valuation model inputs above under “Stock Options”) and is recognized as expense on a straight-line basis over the requisite service period (or six-month offering period).

The weighted average grant date fair value of purchase rights under the ESPP during fiscal years ended April 30, 2023, 2022 and 2021 was $4.93, $8.62 and $3.17, respectively, based on the following weighted-average Black-Scholes option valuation model inputs:

Schedule of ESPP Fair value assumptions
	Fiscal Year Ended April 30,
	2023		2022		2021
Risk-free interest rate		3.76%		0.15%		0.14%
Expected life (in years)		0.50		0.50		0.50
Expected volatility		68.60%		59.91%		75.50%
Expected dividend yield		–		–		–

Stock-based Compensation Expense

Stock-based compensation expense included in our consolidated statements of income and comprehensive income was comprised of the following (in thousands):


	Fiscal Year Ended April 30,
	2023		2022		2021
Cost of revenues	$	3,876	$	2,540	$	1,404
Selling, general and administrative expense		7,102		4,840		2,450
Total	$	10,978	$	7,380	$	3,854

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Apr. 30, 2023

Accounting Policies [Abstract]

Schedule of restricted cash

Schedule of restricted cash
	As of April 30,
	2023		2022		2021
Cash and cash equivalents	$	38,542	$	126,166	$	169,915
Restricted cash		350		350		350
Total cash, cash equivalents and restricted cash	$	38,892	$	126,516	$	170,265

Disaggregation of revenue

Disaggregation of revenue
	Fiscal Year Ended April 30,
	2023		2022		2021
Manufacturing revenues	$	125,416	$	99,282	$	83,678
Process development revenues		23,850		20,315		12,190
Total revenues	$	149,266	$	119,597	$	95,868

Concentration of revenues

Concentration of revenues
Customer	Geographic Location	2023			2022			2021
Halozyme Therapeutics, Inc.⁽¹⁾	U.S.		53	%		41	%		51	%
IGM Biosciences, Inc.	U.S.		*			11			*
Gilead Sciences, Inc.	U.S.		–			*			16

______________

	⁽¹⁾	Revenues are derived from the manufacture of multiple therapeutics that our customer uses in various products and product candidates.
	*	Represents a percentage less than 10% of our total revenues.

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 – 15 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
	April 30,
	2023			2022
Leasehold improvements	$	97,514		$	37,345
Laboratory and manufacturing equipment		35,501			30,089
Computer equipment and software		5,028			5,326
Furniture, fixtures and office equipment		1,681			843
Construction-in-progress		68,013			43,809
Total property and equipment, gross		207,737			117,412
Less: accumulated depreciation and amortization		(30,368	)		(24,457	)
Total property and equipment, net	$	177,369		$	92,955

Income Taxes (Details - Deferred income taxes) - USD ($) $ in Thousands	Apr. 30, 2023	Apr. 30, 2022
Income Tax Disclosure [Abstract]
Net operating losses	$ 112,194	$ 99,710
Research and development credits	5,569	5,550
Stock-based compensation	2,589	2,710
Deferred revenue	2,420	5,494
Lease liabilities	12,742	11,107
Accrued liabilities	2,248	785
Accrued compensation	1,781	1,705
Total deferred tax assets	139,543	127,061
Less valuation allowance	0	0
Total deferred tax assets, net of valuation allowance	139,543	127,061
Deferred tax liabilities:
Fixed assets	(14,320)	(1,972)
ROU assets	(11,584)	(10,007)
Total deferred tax liabilities	(25,904)	(11,979)
Net deferred tax assets	$ 113,639	$ 115,082

Equity Compensation Plans (Details - ESPP Fair value assumptions) - Employee Stock Purchase Plan [Member]	12 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk-free interest rate	3.76%	0.15%	0.14%
Expected life (in years)	6 months	6 months	6 months
Expected volatility	68.60%	59.91%	75.50%
Expected dividend yield	0.00%	0.00%	0.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Leases (Tables)

12 Months Ended

Apr. 30, 2023

Leases

Schedule of lease costs

Schedule of lease costs
	Fiscal Year Ended April 30,
	2023		2022		2021
Operating lease cost	$	4,386	$	3,872	$	3,151
Variable lease cost		1,408		944		676
Short-term lease cost		576		515		388
Finance lease costs:
Amortization of right-of-use assets		216		43		82
Interest on lease liabilities		125		47		4
Total lease costs	$	6,711	$	5,421	$	4,301

Balance sheet classification of leases

Balance sheet classification of leases
			April 30,
Leases	Classification	2023		2022
Assets
Operating	Operating lease right-of-use assets	$	42,772	$	36,806
Finance	Property and equipment, net		2,529		2,728
Total leased assets		$	45,301	$	39,534

Liabilities
Current:
Operating	Current portion of operating lease liabilities	$	1,358	$	2,969
Finance	Other current liabilities		531		505
Non-current:
Operating	Operating lease liabilities, less current portion		45,690		37,886
Finance	Finance lease liabilities, less current portion		1,562		2,093
Total lease liabilities		$	49,141	$	43,453

Operating and finance leases

Operating and finance leases
Weighted average remaining lease term (years):
Operating leases	16.6	12.4
Finance lease	3.7	4.7
Weighted average discount rate
Operating leases	6.0%	3.3%
Finance lease	5.3%	5.3%

Schedule of supplemental cash flow information related to leases


	Fiscal Year Ended April 30,
	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,069	$	2,376	$	2,972
Operating cash flows from finance leases		125		47		5
Financing cash flows from finance leases		505		162		93

Non-cash transactions:
Right-of-use assets obtained upon operating lease modifications and reassessments, net	$	9,267	$	4,554	$	–
Right-of-use assets obtained in exchange for operating lease obligations	$	–	$	16,093	$	–
Decapitalization of right-of-use assets upon impairment	$	89	$	–	$	–
Property and equipment obtained in exchange for finance lease obligation	$	–	$	2,760	$	–

Schedule of maturities of operating lease liabilities


Fiscal Year Ending April 30,	Operating Leases			Finance Lease			Total
2024	$	4,140		$	629		$	4,769
2025		4,060			629			4,689
2026		4,167			629			4,796
2027		4,199			419			4,618
2028		4,036			–			4,036
Thereafter		56,418			–			56,418
Total lease payments	$	77,020		$	2,306		$	79,326
Less: imputed interest		(29,972	)		(213	)		(30,185	)
Total lease liabilities	$	47,048		$	2,093		$	49,141

Summary of Significant Accounting Policies

12 Months Ended

Apr. 30, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2 – Summary of Significant Accounting Policies

Cash and Cash Equivalents

We consider all short-term investments readily convertible to cash, without notice or penalty, with an initial maturity of 90 days or less to be cash equivalents.

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 April 30, 2023 and 2022, restricted cash of $0.4 million was pledged as collateral under the letter of credit.

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

Schedule of restricted cash
	As of April 30,
	2023		2022		2021
Cash and cash equivalents	$	38,542	$	126,166	$	169,915
Restricted cash		350		350		350
Total cash, cash equivalents and restricted cash	$	38,892	$	126,516	$	170,265

Revenue Recognition

We recognize revenue in accordance with the authoritative guidance of ASC 606, Revenue from Contracts with Customers. Under ASC 606, we recognize revenue when we transfer promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. To determine revenue recognition for contracts with customers, we perform the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation.

Revenue recognized from services provided under our customer contracts is 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
	Fiscal Year Ended April 30,
	2023		2022		2021
Manufacturing revenues	$	125,416	$	99,282	$	83,678
Process development revenues		23,850		20,315		12,190
Total revenues	$	149,266	$	119,597	$	95,868

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 consolidated 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 fiscal years ended April 30, 2023 and 2022, we recognized revenue of $40.8 million and $34.0 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. For contracts with multiple performance obligations, we allocate transaction price to each performance obligation identified in a contract on a relative standalone selling price basis. We generally determine relative standalone selling prices based on the price observed in the customer contract for each distinct performance obligation. If observable standalone selling prices are not available, we may estimate the applicable standalone selling price based on the pricing of other comparable services or on a price that we believe the market is willing to pay for the applicable service.

In determining the transaction price, we also 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 judgment in estimating revenue to be recognized. Judgment 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 fiscal year ended April 30, 2023, we recognized revenue of $3.0 million for changes in estimates for variable consideration under a contract where uncertainties had been resolved. During the fiscal year ended April 30, 2022, changes in estimates for variable consideration resulted in a decrease in revenues of $14.7 million. These changes in estimates for variable consideration can primarily be attributed to a dispute with a customer, which was resolved during the fiscal year ended April 30, 2023, over the payment of certain cancellation fees incurred in fiscal 2022 and due to us under the terms of the contract (Note 10).

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 April 30, 2023, we do not have any unsatisfied performance obligations for contracts greater than one year.

Costs incurred to obtain a contract are not material. These costs are generally employee sales commissions, which are expensed as incurred and included in selling, general and administrative expense in the consolidated statements of income and comprehensive income.

Accounts Receivable, Net

Accounts receivable is 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 judgment in assessing the ultimate realization of our receivables and we estimate an allowance for doubtful accounts based on various factors, such as the aging of our receivables, historical experience, and the financial condition of our customers.

Based on our analysis of our accounts receivable balance as of April 30, 2023, we determined an allowance for doubtful accounts of $0.5 million was deemed necessary.

Based on our analysis of our accounts receivable balance as of April 30, 2022, we determined an allowance for doubtful accounts of $18.4 million was deemed necessary, which amount was primarily related to a dispute with a customer over the payment of certain cancellation fees due to us under the terms of the contract. The contract dispute with the customer was resolved during the fiscal year ended April 30, 2023 (Note 10).

Concentrations of Credit Risk and Customer Base

Financial instruments that potentially subject us to concentrations of credit risk consist of cash and cash equivalents, accounts receivable, net and contract assets. As of April 30, 2023 and 2022, we maintain our cash balances primarily with a major commercial bank and our deposits held with the bank exceed the amount of government insurance limits provided on our deposits. We are exposed to credit risk in the event of default by the major commercial bank holding our cash balances to the extent of the cash amounts recorded on the accompanying consolidated balance sheets exceed the amount of government insurance limits provided on our deposits.

Our accounts receivable from amounts billed for services provided under customer contracts are derived from a limited number of customers. Most customer contracts require up-front payments and installment payments during the service period. We perform periodic evaluations of the financial condition of our customers and generally do not require collateral, but we can terminate any contract if a material default occurs. At April 30, 2023 and 2022, approximately 76% and 84%, respectively, of our accounts receivable, net were due from our top ten customers.

Our revenues are derived from a limited number of customers. Historically, these customers have not entered into long-term contracts because their need for drug supply depends on a variety of factors, including a product’s stage of development, the timing of regulatory filings and approvals, the product needs of their collaborators, if applicable, their financial resources and the market demand with respect to a commercial product.

The table below identifies each of our customers that accounted for 10% or more of our total revenues during any of the fiscal years ended April 30, 2023, 2022 and 2021:

Concentration of revenues
Customer	Geographic Location	2023			2022			2021
Halozyme Therapeutics, Inc.⁽¹⁾	U.S.		53	%		41	%		51	%
IGM Biosciences, Inc.	U.S.		*			11			*
Gilead Sciences, Inc.	U.S.		–			*			16

______________

	⁽¹⁾	Revenues are derived from the manufacture of multiple therapeutics that our customer uses in various products and product candidates.
	*	Represents a percentage less than 10% of our total revenues.

We attribute revenue to the individual countries where the customer is headquartered. Approximately 100% of our revenues for the fiscal years ended April 30, 2023 and 2022 were derived from U.S. based customers.

Leases

We account for our leases in accordance with the authoritative guidance of ASC 842, 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, 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.

Our finance lease with a term greater than one year is included as an asset 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 is calculated using the implicit interest rate in the lease. Finance lease ROU assets are amortized on a straight-line basis over the expected useful life of the asset and the carrying amount of the lease liability is adjusted to reflect interest, which is recorded as interest expense.

Leases with an initial term of 12 months or less are not recorded on our consolidated balance sheets and lease expense for these short-term leases is recognized on a straight-line basis over the lease term. 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 – 15 years
Computer equipment and software		3 – 5 years
Furniture, fixtures and office equipment		5 – 10 years

Costs for property and equipment not yet placed into service have been capitalized as construction-in-progress. These costs are primarily related to equipment and leasehold improvements associated with our manufacturing facilities, and will be depreciated in accordance with the above guidelines once placed into service. Interest costs incurred during construction of major capital projects are capitalized as construction-in-progress until the underlying asset is ready for its intended use, at which point the interest costs are amortized as depreciation expense over the life of the underlying asset. Interest capitalized as construction-in-progress for the fiscal years ended April 30, 2023 and 2022, was $0.4 million and $0.2 million, respectively. 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
	April 30,
	2023			2022
Leasehold improvements	$	97,514		$	37,345
Laboratory and manufacturing equipment		35,501			30,089
Computer equipment and software		5,028			5,326
Furniture, fixtures and office equipment		1,681			843
Construction-in-progress		68,013			43,809
Total property and equipment, gross		207,737			117,412
Less: accumulated depreciation and amortization		(30,368	)		(24,457	)
Total property and equipment, net	$	177,369		$	92,955

Depreciation and amortization expense for the fiscal years ended April 30, 2023, 2022 and 2021 was $7.2 million, $4.5 million and $3.5 million, respectively.

Capitalized Software Implementation Costs

We capitalize certain implementation costs incurred under cloud computing hosting arrangements. Costs incurred during the application development stage related to the implementation of the hosting arrangement are capitalized and included within other assets on the accompanying consolidated balance sheets. Amortization of capitalized implementation costs is recognized on a straight-line basis over the term of the associated hosting arrangement when it is ready for its intended use. Costs related to preliminary project activities and post-implementation activities are expensed as incurred.

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 fiscal year ended April 30, 2023, there were indicators of impairment of the value of certain long-lived assets that resulted in an impairment loss of $0.1 million, which amount is included in selling, general and administrative expenses in the consolidated statements of income and comprehensive income. For the fiscal year ended April 30, 2022, there were no indicators of impairment of the value of our long-lived assets and no impairment losses were recognized.

Fair Value of Financial Instruments

The carrying amounts in the accompanying consolidated balance sheets for cash and cash equivalents, restricted cash, accounts receivable, net, accounts payable and accrued liabilities approximate their fair values due to their short-term maturities.

Fair Value Measurements

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

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

As of April 30, 2023 and 2022, we did not have any Level 2 or Level 3 financial assets and our cash equivalents of $28.7 million and $116.3 million, respectively, were invested in money market funds with a major commercial bank and carried at fair value based on quoted market prices for identical securities (Level 1 inputs). 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 the consolidated financial statements for further details. We did not have any other Level 2 or Level 3 financial liabilities as of April 30, 2023 and 2022.

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.

Debt Issuance Costs

Debt issuance costs related to convertible senior notes are recorded as a deduction that is netted against the principal value of the debt and are amortized to interest expense using the effective interest method over the contractual term of the debt (Note 3).

Debt issuance costs related to the revolving credit facility are included in prepaid expenses and other current assets in the consolidated balance sheet at April 30, 2023 and are amortized to interest expense over the contractual term of the revolving credit facility (Note 3).

Advertising Costs

Advertising costs are expensed as incurred and included in selling, general and administrative expenses in the consolidated statements of income and comprehensive income. For the fiscal years ended April 30, 2023, 2022 and 2021, advertising costs were $0.7 million, $0.6 million, and $0.3 million, respectively.

Income Taxes

We utilize the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”). Under the liability method, deferred taxes are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. We provide a valuation allowance when it is more likely than not that our deferred tax assets will not be realized. On a periodic basis, we reassess the valuation allowance on our deferred tax assets, weighing positive and negative evidence to assess the recoverability of the deferred tax assets. In the fourth quarter of fiscal 2022, we reassessed the valuation allowance noting the shift of positive evidence outweighing negative evidence, including significant revenue growth, continued profitability, and expectations regarding future profitability. After assessing both the positive evidence and negative evidence, we determined it was more likely than not that our deferred tax assets would be realized and therefore released our valuation allowance related to federal and state deferred tax assets as of April 30, 2022, resulting in a benefit from income taxes of $115.0 million. We maintained the same position, that our federal and state deferred tax assets did not require a valuation allowance, as of April 30, 2023 (Note 7).

We are required to file federal and state income tax returns in various jurisdictions. The preparation of these returns requires us to interpret the applicable tax laws in effect in such jurisdictions, which could affect the amount paid by us.

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.

Accounting Standards Not Yet Adopted

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. In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) and Leases (Topic 842): Effective Dates, which required entities to make a one-time determination of whether an entity is eligible to be a smaller reporting company as of November 15, 2019 for the purpose of determining the effective date of ASU 2016-13. We determined that we were eligible to be a smaller reporting company as of November 15, 2019, and therefore, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, which will be our fiscal year 2024 beginning May 1, 2023. We do not anticipate the adoption of this standard will have a material impact on our consolidated financial statements.

Stockholders' Equity (Details) shares in Thousands	Apr. 30, 2023 shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock reserved for future issuance	16,077
Conversion Of Convertible Notes [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock reserved for future issuance	6,776
Stock Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock reserved for future issuance	8,338
Employee Stock Purchase Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock reserved for future issuance	963

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Debt (Details - Interest expense) - USD ($)
$ in Thousands

12 Months Ended

Apr. 30, 2023

Apr. 30, 2022

Apr. 30, 2021

Debt Instrument [Line Items]

Amortization of debt discount

$ 1,046

$ 1,030

$ 916

Convertible Notes [Member]

Debt Instrument [Line Items]

Contractual interest expense

1,395

1,603

245

Amortization of issuance costs

1,046

1,030

Amortization of debt discount

^[1]

862

Total interest expense associated with Convertible Notes

$ 2,441

$ 2,633

$ 1,161

[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.

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
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-Paragraph 1B
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1D

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1D

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1D
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1D

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Publisher FASB
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Publisher FASB
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Net Income Per Common Share (Details - Antidilutive shares) - shares shares in Thousands	12 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive effect of shares on diluted shares outstanding	7,075	52	3,621
Equity Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive effect of shares on diluted shares outstanding	46	43	829
RSUs, PSUs, and ESPP [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive effect of shares on diluted shares outstanding	253	9	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	928
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	0	1,864

Commitments and Contingencies

12 Months Ended

Apr. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 10 – 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 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.

Humanigen Arbitration

On December 17, 2021, we filed a Demand for Arbitration claiming more than $20.5 million in damages against Humanigen, Inc. (“Humanigen”) with the American Arbitration Association (“AAA”) entitled, Avid Bioservices, Inc. v. Humanigen, Inc. (AAA Case No. 01-21-0018-0523). The Demand contains three claims for: (1) breach of contract concerning the process development and manufacturing master services agreement (“MSA”); (2) anticipatory breach of contract concerning the capacity expansion and contribution/commitment letter (“Letter Agreement”); and (3) trade libel and commercial disparagement. On January 6, 2022, Humanigen filed an Answer to our Demand, denying the allegations and asserting affirmative defenses. On July 1, 2022, Humanigen filed its counterclaims against us in the form of a complaint in the Orange County Superior Court (Case No. 30-2022-01268184) alleging three claims for (1) breach of the MSA seeking return or reimbursement of the amounts Humanigen paid us before cancelling the MSA, (2) declaratory relief that Humanigen has no remaining obligations under the Letter Agreement, and (3) unfair business practices. On July 19, 2022, we filed a motion with the state court to compel all claims by Humanigen against us to arbitration before the AAA. On October 17, 2022, the state court granted our motion to compel all of Humanigen’s claims against us to arbitration and denied Humanigen’s motion to stay the arbitration. As a result of the court having granted our motion, on November 3, 2022, Humanigen filed its Demand for Arbitration realleging the breach of the MSA and unfair business practices claims which it had initially filed in state court. On November 10, 2022, we filed an Answer to Humanigen’s Demand, denying the allegations and asserting affirmative defenses. On February 21, 2023, we entered into a Confidential Settlement and Mutual Releases Agreement with Humanigen resolving the arbitration proceeding and all disputes between the parties.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands	12 Months Ended
	Apr. 30, 2021 USD ($) $ / shares
Statement of Stockholders' Equity [Abstract]
Preferred Stock, Dividends, Per Share, Cash Paid \| $ / shares	$ 2.705
Payment of stock issuance costs \| $	$ 2,359

Equity Compensation Plans (Details - PSU Activity) - Performance Stock Units [Member] - $ / shares shares in Thousands	12 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding, beginning balance	233
Weighted average exercise price outstanding, beginning	$ 25.31
Granted	608
Granted, weighted average grant date fair value	$ 18.09	$ 25.36	$ 0
Vested	(161)
Vested, weighted average grant date fair value	$ 20.75
Forfeited	(158)
Forfeited, weighted average grant date fair value	$ 20.69
Outstanding, ending balance	522	233
Weighted average exercise price outstanding, ending	$ 19.70	$ 25.31

Income Taxes (Details - Unrecognized tax positions) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2023	Apr. 30, 2022
Income Tax Disclosure [Abstract]
Unrecognized tax positions, beginning of year	$ 5,133	$ 1,600
Gross (decrease) increase – prior period tax positions	(1,693)	3,533
Unrecognized tax positions, end of year	$ 3,440	$ 5,133

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021
Product Information [Line Items]
Restricted cash	$ 400,000	$ 400,000
Revenue recognized for which the contract liability was recorded in the prior year	40,800,000	34,000,000
Change in revenue due to change in estimate	3,000,000.0	14,700,000
Allowance for doubtful accounts	500,000	18,400,000
Capitalized Interest Costs	400,000	200,000
Depreciation and amortization	7,200,000	4,500,000	$ 3,500,000
Impairment of long-lived assets	100,000
Impairment of long-lived assets		0
Cash equivalents	28,700,000	116,300,000
Advertising Expense	700,000	$ 600,000	$ 300,000
Deferred tax assets	$ 115,000,000
Revenue Benchmark [Member] \| Customer Concentration Risk [Member] \| Customer [Member] \| UNITED STATES
Product Information [Line Items]
Concentration risk percentage	100.00%	100.00%

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 560	$ 127,672	$ 11,212
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Stock-based compensation	10,978	7,380	3,854
Depreciation and amortization	7,210	4,480	3,453
Amortization of debt discount and issuance costs	1,046	1,030	916
Deferred income taxes	1,443	(115,082)	0
Loss on disposal and/or impairment of property and equipment	139	381	0
Changes in operating assets and liabilities:
Accounts receivable, net	2,249	(1,705)	(10,236)
Contract assets	(4,240)	743	(2,812)
Inventory	(17,846)	(14,191)	(988)
Prepaid expenses and other assets	(61)	(4,232)	(1,260)
Accounts payable	964	(943)	(608)
Accrued compensation and benefits	362	(376)	5,775
Contract liabilities	(16,446)	3,029	21,649
Other accrued expenses and liabilities	755	1,279	227
Net cash (used in) provided by operating activities	(12,887)	9,465	31,182
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(77,638)	(56,411)	(9,864)
Net cash used in investing activities	(77,638)	(56,411)	(9,864)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock under equity compensation plans	3,406	3,359	3,984
Proceeds from issuance of common stock, net of issuance costs	0	0	32,141
Proceeds from issuance of convertible senior notes, net of issuance costs	0	0	138,464
Purchases of capped calls related to convertible senior notes	0	0	(12,837)
Repayment of note payable	0	0	(4,379)
Dividends paid on preferred stock	0	0	(4,455)
Redemption of preferred stock	0	0	(37,051)
Impact of preferred stock redemption	0	0	(3,439)
Principal payments on finance leases	(505)	(162)	(93)
Net cash provided by financing activities	2,901	3,197	112,335
Net (decrease) increase in cash, cash equivalents and restricted cash	(87,624)	(43,749)	133,653
Cash, cash equivalents and restricted cash, beginning of period	126,516	170,265	36,612
Cash, cash equivalents and restricted cash, end of period	38,892	126,516	170,265
Supplemental disclosures of cash flow information:
Cash paid for interest	1,118	1,670	5
Cash paid for income taxes	260	64	0
Supplemental disclosures of non-cash activities:
Unpaid purchases of property and equipment in accounts payable	$ 14,125	$ 1,190	$ 3,939

Debt

12 Months Ended

Apr. 30, 2023

Debt Disclosure [Abstract]

Debt

Note 3 – Debt

Convertible Senior Notes Due 2026

In March 2021, we issued $143.8 million in aggregate principal amount of 1.25% exchangeable senior notes due 2026 (“Convertible Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. 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 1.25% per annum, payable semi-annually in arrears on March 15 and September 15 of each year. 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 principal 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 April 30, 2023, 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 consolidated balance sheets at April 30, 2023 and 2022.

In accounting for the issuance of the Convertible Notes, prior to the adoption of ASU 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”), 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. 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 were 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 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):


	April 30, 2023			April 30, 2022
Principal	$	143,750		$	143,750
Unamortized issuance costs		(3,127	)		(4,173	)
Net carrying amount	$	140,623		$	139,577

As of April 30, 2023 and 2022, the estimated fair value of the Convertible Notes was approximately $157.3 million and $167.1 million, respectively. The fair value was determined based on the last actively traded price per $100 of the Convertible Notes for the periods ended April 30, 2023 and 2022 (Level 2).

The following table summarizes the interest expense recognized related to the Convertible Notes for the fiscal years ended April 30, 2023 and 2022 (in thousands):

Schedule of interest expenses
	Fiscal Year Ended April 30,
	2023		2022		2021
Contractual interest expense	$	1,395	$	1,603	$	245
Amortization of issuance costs		1,046		1,030		54
Amortization of debt discount ⁽¹⁾		–		–		862
Total interest expense associated with Convertible Notes	$	2,441	$	2,633	$	1,161

_______________

(1)

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 12,837 $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 evaluated the Capped Calls under ASC 815-10 and determined that they 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 was recorded as a reduction to additional paid-in capital in the 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. During fiscal years 2023 and 2022, there were no conversions of our Convertible Notes, and therefore, there was no activity with respect to the Capped Calls. We believe the conditions for equity classification continue to be met as of April 30, 2023 and 2022.

Revolving Credit Facility

On March 14, 2023, we entered into a credit agreement with Bank of America, N.A., as administrative agent and letter of credit issuer (the “Credit Agreement”). The Credit Agreement provides for a revolving credit facility (the “Revolving Credit Facility”) in an amount equal to the lesser of (i) $50 million, and (ii) a borrowing base calculated as the sum of (a) 80% of the value of certain of our eligible accounts receivable, plus (b) up to 100% of the value of eligible cash collateral. The Revolving Credit Facility will mature on March 13, 2024 and is secured by substantially all of our assets. As of April 30, 2023, there were no outstanding loans under the Revolving Credit Facility.

Loans under the Revolving Credit Facility will bear interest at either (1) a term Secured Overnight Financing Rate (“SOFR”) rate for a specified interest period plus a SOFR adjustment (equal to 0.10%) plus a margin of 1.40% or (2) base rate plus a margin of 0.40% at our option. Interest on any outstanding loans is due and payable monthly and the principal balance is due at maturity. In addition, we pay a quarterly unused revolving line facility fee of 0.20% per annum on the average unused facility.

The Credit Agreement includes certain customary affirmative and negative covenants, including limitations on mergers, consolidations and sales of assets, limitations on liens, limitations on certain restricted payments and investments, limitations on transactions with affiliates and limitations on incurring additional indebtedness. In addition, the Credit Agreement requires maintenance of a minimum consolidated EBITDA, as defined in the Credit Agreement, of $15 million for the most recently completed four (4) fiscal quarters as measured at the end of each fiscal quarter. As of April 30, 2023, we were in compliance with the Credit Agreement’s financial covenant.

The Credit Agreement also provides for certain customary events of defaults, including, among others, failure to make payments, breach of representations and warranties, and default of convenants.

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Summary of Significant Accounting Policies (Details - Property and Equipment) - USD ($) $ in Thousands	Apr. 30, 2023	Apr. 30, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 207,737	$ 117,412
Less: Accumulated depreciation and amortization	(30,368)	(24,457)
Total property and equipment, net	177,369	92,955
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	97,514	37,345
Manufactured Product, Other [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	35,501	30,089
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,028	5,326
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,681	843
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 68,013	$ 43,809

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
Income Taxes (Details Narrative) - USD ($)	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021
Operating Loss Carryforwards [Line Items]
Change in valuation allowance	$ 0
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	560,000	$ 127,672,000	$ 11,212,000
Valuation adjustments		$ 11,300,000
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward	442,400,000
Research and development credit carry forwards	5,800,000
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward	294,700,000
Research and development credit carry forwards	1,500,000
Other State [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward	$ 900,000

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 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
Series E preferred stock dividends paid ($2.705 per share)			$ (4,455)		$ (4,455)
Conversion of Series E preferred stock to common stock
Conversion of Series E preferred stock to common stock, shares	(28)	34
Redemption of Series E preferred stock	$ (2)		$ (40,488)		$ (40,490)
Redemption of Series E preferred stock, shares	(1,620)
Common stock issued, net of issuance costs of $2,359		$ 4	32,137		32,141
Common stock issued, net of issuance costs of $2,359, shares		3,833
Common stock issued under equity compensation plans		$ 1	3,983		3,984
Common stock issued under equity compensation plans, shares		719
Equity component of convertible senior notes			42,431		42,431
Purchase of capped calls related to convertible senior notes			(12,837)		(12,837)
Stock-based compensation expense			3,854		3,854
Net income				11,212	11,212
Ending balance, value at Apr. 30, 2021		$ 61	637,534	(559,859)	77,736
Ending balance, shares at Apr. 30, 2021		61,069
Cumulative-effect adjustment from modified retrospective adoption of ASU 2020-06			(42,431)	810	(41,621)
Common stock issued under equity compensation plans		$ 1	3,358		3,359
Common stock issued under equity compensation plans, shares		738
Stock-based compensation expense			7,380		7,380
Net income				127,672	127,672
Ending balance, value at Apr. 30, 2022		$ 62	605,841	(431,377)	174,526
Ending balance, shares at Apr. 30, 2022		61,807
Common stock issued under equity compensation plans		$ 1	3,405		3,406
Common stock issued under equity compensation plans, shares		885
Stock-based compensation expense			10,978		10,978
Net income				560	560
Ending balance, value at Apr. 30, 2023		$ 63	$ 620,224	$ (430,817)	$ 189,470
Ending balance, shares at Apr. 30, 2023		62,692

Cover - USD ($)	12 Months Ended
Cover - USD ($)	Apr. 30, 2023	Jun. 09, 2023	Oct. 31, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Apr. 30, 2023
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2023
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	14191 Myford Road
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 887,300,000
Entity Common Stock, Shares Outstanding		62,729,154
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Auditor Firm ID	42
Auditor Name	Ernst & Young LLP
Auditor Location	Irvine, California

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Apr. 30, 2023

Accounting Policies [Abstract]

Cash and Cash Equivalents

Cash and Cash Equivalents

We consider all short-term investments readily convertible to cash, without notice or penalty, with an initial maturity of 90 days or less to be cash equivalents.

Restricted Cash

Restricted Cash

Schedule of restricted cash
	As of April 30,
	2023		2022		2021
Cash and cash equivalents	$	38,542	$	126,166	$	169,915
Restricted cash		350		350		350
Total cash, cash equivalents and restricted cash	$	38,892	$	126,516	$	170,265

Revenue Recognition

Revenue Recognition

Revenue recognized from services provided under our customer contracts is 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
	Fiscal Year Ended April 30,
	2023		2022		2021
Manufacturing revenues	$	125,416	$	99,282	$	83,678
Process development revenues		23,850		20,315		12,190
Total revenues	$	149,266	$	119,597	$	95,868

During the fiscal years ended April 30, 2023 and 2022, we recognized revenue of $40.8 million and $34.0 million, respectively, for which the contract liability was recorded in a prior period.

Accounts Receivable, Net

Accounts Receivable, Net

Based on our analysis of our accounts receivable balance as of April 30, 2023, we determined an allowance for doubtful accounts of $0.5 million was deemed necessary.

Concentrations of Credit Risk and Customer Base

Concentrations of Credit Risk and Customer Base

The table below identifies each of our customers that accounted for 10% or more of our total revenues during any of the fiscal years ended April 30, 2023, 2022 and 2021:

Concentration of revenues
Customer	Geographic Location	2023			2022			2021
Halozyme Therapeutics, Inc.⁽¹⁾	U.S.		53	%		41	%		51	%
IGM Biosciences, Inc.	U.S.		*			11			*
Gilead Sciences, Inc.	U.S.		–			*			16

______________

	⁽¹⁾	Revenues are derived from the manufacture of multiple therapeutics that our customer uses in various products and product candidates.
	*	Represents a percentage less than 10% of our total revenues.

Leases

Leases

Inventory

Inventory

Property and Equipment

Property and Equipment


Description		Estimated Useful Life
Leasehold improvements		Shorter of estimated useful life or lease term
Laboratory and manufacturing equipment		5 – 15 years
Computer equipment and software		3 – 5 years
Furniture, fixtures and office equipment		5 – 10 years

Schedule of property and equipment
	April 30,
	2023			2022
Leasehold improvements	$	97,514		$	37,345
Laboratory and manufacturing equipment		35,501			30,089
Computer equipment and software		5,028			5,326
Furniture, fixtures and office equipment		1,681			843
Construction-in-progress		68,013			43,809
Total property and equipment, gross		207,737			117,412
Less: accumulated depreciation and amortization		(30,368	)		(24,457	)
Total property and equipment, net	$	177,369		$	92,955

Depreciation and amortization expense for the fiscal years ended April 30, 2023, 2022 and 2021 was $7.2 million, $4.5 million and $3.5 million, respectively.

Capitalized Software Implementation Cost

Capitalized Software Implementation Costs

Impairment

Impairment

Fair Value of Financial Instruments

Fair Value of Financial Instruments

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.

Stock-Based Compensation

Stock-Based Compensation

Debt Issuance Costs

Debt Issuance Costs

Advertising Costs

Advertising Costs

Income Taxes

Income Taxes

Comprehensive Income

Comprehensive Income

Accounting Standards Not Yet Adopted

Accounting Standards Not Yet Adopted

Description of Company and Basis of Presentation

12 Months Ended

Apr. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [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 of biologics for the biotechnology and biopharmaceutical industries.

Except where specifically noted or the context otherwise requires, references to “Avid,” the “Company,” “we,” “us,” and “our,” in this Annual Report refer to Avid Bioservices, Inc. and its subsidiary.

Basis of Presentation and Preparation

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include our accounts and those of our subsidiary. All intercompany accounts and transactions among the consolidated entities have been eliminated in the consolidated financial statements.

The preparation of our consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Management’s estimates are based on historical information available as of the date of the consolidated financial statements and on various other assumptions that are believed to be reasonable under the circumstances. Accounting estimates and judgments are inherently uncertain and actual results could differ materially from these estimates.

Segment Reporting

Our business operates in one operating segment, our contract manufacturing and development services segment. Accordingly, we reported our financial results for one reportable segment. All our identifiable assets are in the United States.

Debt (Details Narrative) - USD ($)		1 Months Ended	12 Months Ended
Debt (Details Narrative) - USD ($)	Mar. 14, 2023	Mar. 31, 2021	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021
Debt Instrument [Line Items]
Proceeds from Convertible Debt			$ 0	$ 0	$ 138,464,000
Payment of capped calls			(0)	(0)	$ 12,837,000
Revolving Credit Facility [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]
Debt Instrument [Line Items]
Revolving credit facility, description	(1) a term Secured Overnight Financing Rate (“SOFR”) rate for a specified interest period plus a SOFR adjustment (equal to 0.10%) plus a margin of 1.40% or (2) base rate plus a margin of 0.40% at our option.
Line of Credit Facility, Commitment Fee Percentage	0.20%
Revolving Credit Facility [Member] \| Credit Agreement [Member]
Debt Instrument [Line Items]
Revolving credit facility, description	(i) $50 million, and (ii) a borrowing base calculated as the sum of (a) 80% of the value of certain of our eligible accounts receivable, plus (b) up to 100% of the value of eligible cash collateral. The Revolving Credit Facility will mature on March 13, 2024 and is secured by substantially all of our assets.
Outstanding loans			0
Line of credit	$ 15,000,000
Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Debt face amount		$ 143,800,000
Proceeds from Convertible Debt		138,500,000
Debt issuance costs		$ 5,300,000
Interest rate		1.25%
Maturity date		Mar. 15, 2026
Convertible Senior Notes [Member] \| Debt Component [Member]
Debt Instrument [Line Items]
Debt face amount		$ 99,700,000
Debt issuance costs		$ 3,700,000
Effective discount rate		8.78%
Convertible Senior Notes [Member] \| Equity Component [Member]
Debt Instrument [Line Items]
Debt face amount		$ 44,100,000
Debt issuance costs		$ 1,600,000
Convertible Notes [Member]
Debt Instrument [Line Items]
Fair value of the Convertible Notes			$ 157,300,000	$ 167,100,000
Trade price per share			$ 100	$ 100

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021
Income Statement [Abstract]
Revenues	$ 149,266	$ 119,597	$ 95,868
Cost of revenues	117,786	82,949	66,561
Gross profit	31,480	36,648	29,307
Operating expenses:
Selling, general and administrative	27,879	21,226	17,064
Total operating expenses	27,879	21,226	17,064
Operating income	3,601	15,422	12,243
Interest expense	(2,600)	(2,680)	(1,164)
Other income (expense), net	1,002	(81)	133
Net income before income taxes	2,003	12,661	11,212
Income tax (expense) benefit	(1,443)	115,011	0
Net income	560	127,672	11,212
Comprehensive income	560	127,672	11,212
Series E preferred stock accumulated dividends	0	0	(4,455)
Impact of Series E preferred stock redemption	0	0	(3,439)
Net income attributable to common stockholders	$ 560	$ 127,672	$ 3,318
Net income per share attributable to common stockholders:
Basic	$ 0.01	$ 2.08	$ 0.06
Diluted	$ 0.01	$ 1.84	$ 0.06
Weighted average common shares outstanding:
Basic	62,268	61,484	58,222
Diluted	63,782	70,474	59,426

Stockholders’ Equity

12 Months Ended

Apr. 30, 2023

Equity [Abstract]

Stockholders’ Equity

Note 5 – Stockholders’ Equity

Series E Preferred Stock Redemption and Dividends

During the fourth quarter of fiscal 2021 and prior to the redemption discussed below, holders of our 10.50% Series E Convertible Preferred Stock (the “Series E Preferred Stock”) converted an aggregate of 28,168 shares of Series E Preferred Stock into 33,514 shares of our common stock determined by dividing the liquidation amount of $25.00 per share by the conversion price of $21.00 per share, rounded down to the nearest whole number.

On April 12, 2021 (the “Redemption Date”), we redeemed all then current remaining outstanding shares of our 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 related to the excess of the redemption value paid upon redemption over the carrying value of our Series E Preferred Stock which is included in impact of preferred stock redemption in the consolidated statements of income and comprehensive income for the fiscal year ended April 30, 2021. 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. In addition, in April 2021, accrued and unpaid dividends of $0.08021 per share was paid to holders of Series E Preferred Stock in connection with the redemption of our Series E Preferred Stock discussed above. For the fiscal year ended April 30, 2021, we paid aggregate cash dividends of $4.5 million for then issued and outstanding shares of our Series E Preferred Stock. No cash dividend amounts were paid for the fiscal years ended April 30, 2023 and 2022.

Sale of Common Stock

During the third quarter of fiscal 2021, we completed an underwritten public offering pursuant to which we sold 3,833,335 shares of our common stock at the public offering price of $9.00 per share, including 500,000 shares sold pursuant to the underwriters’ full exercise of their option to purchase additional shares. The aggregate gross proceeds we received from the public offering were $34.5 million, before deducting underwriting discounts and commissions and other offering related expenses of $2.4 million.

During the fiscal years ended April 30, 2023 and 2022, we had no offerings of our common stock.

Shares of Common Stock Authorized and Reserved for Future Issuance

As of April 30, 2023, 62,691,885 shares of our common stock were issued and outstanding.

Our common stock outstanding as of April 30, 2023 excluded the following shares of common stock reserved for future issuance (in thousands):


	Shares
Stock Incentive Plans		8,338
Employee Stock Purchase Plan		963
Conversion of Convertible Notes		6,776
Total common stock reserved for future issuance		16,077

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Paragraph 14
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481004/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
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-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 14
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 18
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

Debt (Details - Debt component) - Convertible Debt Carrying Amount [Member] - USD ($) $ in Thousands	Apr. 30, 2023	Apr. 30, 2022
Offsetting Assets [Line Items]
Principal	$ 143,750	$ 143,750
Unamortized issuance costs	(3,127)	(4,173)
Net carrying amount	$ 140,623	$ 139,577

Debt (Tables)

12 Months Ended

Apr. 30, 2023

Debt Disclosure [Abstract]

Schedule of net carrying amount of the debt component


	April 30, 2023			April 30, 2022
Principal	$	143,750		$	143,750
Unamortized issuance costs		(3,127	)		(4,173	)
Net carrying amount	$	140,623		$	139,577

Schedule of interest expenses

Schedule of interest expenses
	Fiscal Year Ended April 30,
	2023		2022		2021
Contractual interest expense	$	1,395	$	1,603	$	245
Amortization of issuance costs		1,046		1,030		54
Amortization of debt discount ⁽¹⁾		–		–		862
Total interest expense associated with Convertible Notes	$	2,441	$	2,633	$	1,161

_______________

(1)

Income Taxes

12 Months Ended

Apr. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Note 7 – Income Taxes

Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

At April 30, 2023, management assessed the realizability of deferred tax assets and evaluated the need for a valuation allowance for deferred tax assets on a jurisdictional basis. This evaluation utilizes the framework contained in ASC 740 wherein management analyzes all positive and negative evidence available at the balance sheet date to determine whether all or some portion of our deferred tax assets will not be realized. Under this guidance, a valuation allowance must be established for deferred tax assets when it is more-likely-than-not that the asset will not be realized. In assessing the realization of our deferred tax assets, management considers all available evidence, both positive and negative.

Management’s evaluation placed significant emphasis on guidance in ASC 740, which states that “a cumulative loss in recent years is a significant piece of negative evidence that is difficult to overcome.” In fiscal 2022, we transitioned from a cumulative loss in recent years to cumulative income. This transition coupled with additional positive evidence enabled us to fully release our valuation allowance as of April 30, 2022. We maintained the same position that our deferred tax assets did not require a valuation allowance as of April 30, 2023.

The valuation allowance did not change for the fiscal year ended April 30, 2023. For the fiscal year ended April 30, 2022, 127,672 $122.7 million was released through our consolidated statements of income and comprehensive income and $(11.3) million was recognized related to the valuation adjustments for the adoption of ASU 2020-06, which was reflected as an adjustment to our opening consolidated balance sheet on May 1, 2021.

We are subject to taxation in the United States and various states jurisdictions. We have not been notified that we are under audit by the IRS or any state taxing authorities and our federal and state returns from April 30, 2020 and April 30, 2019, respectively, remain open for examination. Due to the presence of net operating loss (“NOL”) carryforwards the tax authorities can also examine years prior to the standard statue of limitations.

At April 30, 2023, we had federal NOL carry forwards of approximately $442.4 million. The federal NOL carry forwards generated prior to January 1, 2018 expire in fiscal years 2024 through 2038, unless previously utilized. The federal NOL generated after January 1, 2018 of $77.9 million can be carried forward indefinitely. Utilization of NOLs generated subsequent to 2020 are limited to 80% of future taxable income. We also have California state NOL carry forwards of approximately $294.7 million at April 30, 2023, which begin to expire in fiscal year 2024. We also have other state NOL carry forwards of approximately $0.9 million at April 30, 2023, which begin to expire in fiscal year 2037.

Additionally, the future utilization of our NOL carry forwards to offset future taxable income may be subject to an annual limitation, pursuant to Internal Revenue Code Section 382, as a result of ownership changes. A Section 382 analysis has been completed through April 30, 2022, and it was determined that no significant change in ownership had occurred. However, ownership changes occurring subsequent to April 30, 2022 may impact the utilization of NOL carry forwards and other tax attributes in future periods.

At April 30, 2023, we had $5.8 million and $1.5 million of federal and California research and development credit carry forwards. The California research credits do not expire and the federal credits begin to expire in fiscal year 2026.

The provision for income taxes on our net income before income taxes for the fiscal years ended April 30, 2023, 2022 and 2021 is comprised of the following (in thousands):

Schedule of provision for income taxes
	2023		2022			2021
Federal income taxes at statutory rate	$	421	$	2,659		$	2,355
State income taxes, net of valuation allowance		301		605			–
Expiration and adjustments of deferred tax assets		–		–			451
Change in federal valuation allowance		–		(122,703	)		2,450
Stock-based compensation including 162M limitations		615		(1,153	)		(240	)
Research and development credits		–		–			(4,958	)
Adjustment for federal benefit of state		–		5,326			–
Permanent differences		66		425			4
Other, net		40		(170	)		(62	)
Income tax expense (benefit)	$	1,443	$	(115,011	)	$	–

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Significant components of our deferred tax assets and deferred tax liabilities at April 30, 2023 and 2022 are as follows (in thousands):


	2023			2022
Net operating losses	$	112,194		$	99,710
Research and development credits		5,569			5,550
Stock-based compensation		2,589			2,710
Deferred revenue		2,420			5,494
Lease liabilities		12,742			11,107
Accrued liabilities		2,248			785
Accrued compensation		1,781			1,705
Total deferred tax assets		139,543			127,061
Less valuation allowance		–			–
Total deferred tax assets, net of valuation allowance		139,543			127,061
Deferred tax liabilities:
Fixed assets		(14,320	)		(1,972	)
ROU assets		(11,584	)		(10,007	)
Total deferred tax liabilities		(25,904	)		(11,979	)
Net deferred tax assets	$	113,639		$	115,082

In accordance with ASC 740, we are required to recognize the impact of an uncertain tax position in the consolidated financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. An uncertain tax position will not be recognized if it has less than a 50% likelihood of being sustained upon examination by the tax authorities. Unrecognized tax positions at April 30, 2023 and 2022 are as follows (in thousands):

Schedule of unrecognized tax positions
	2023			2022
Unrecognized tax positions, beginning of year	$	5,133		$	1,600
Gross (decrease) increase – prior period tax positions		(1,693	)		3,533
Unrecognized tax positions, end of year	$	3,440		$	5,133

If recognized, the unrecognized tax positions will impact our income tax benefit or effective tax rate. We do not expect any significant increases or decreases to our unrecognized tax positions within the next 12 months.

It is our policy to recognize interest and penalties related to income tax matters in interest expense and other income (expense), net, respectively, in our consolidated statements of income and comprehensive income. For the fiscal years ended April 30, 2023 and 2021, we did not incur any interest or penalties. For the fiscal year ended April 30, 2022, we recognized an immaterial amount of interest and penalties.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

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+ Details

Summary of Significant Accounting Policies (Details - Revenue) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2021
Product Information [Line Items]
Revenues	$ 149,266	$ 119,597	$ 95,868
Manufacturing Revenue [Member]
Product Information [Line Items]
Revenues	125,416	99,282	83,678
Process Development Revenue [Member]
Product Information [Line Items]
Revenues	$ 23,850	$ 20,315	$ 12,190

- 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.

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