10. SEGMENT REPORTING

12 Months Ended

Apr. 30, 2016

Segment Reporting [Abstract]

SEGMENT REPORTING

Our business is organized into two reportable operating segments and both operate in the U.S. Peregrine is engaged in the research and development of monoclonal antibodies for the treatment of cancer. Avid is engaged in providing contract manufacturing services for third-party customers on a fee-for-service basis while also supporting our internal drug development efforts.

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

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

	2016			2015			2014
Contract manufacturing services revenue	$	44,357,000		$	26,744,000		$	22,294,000
Cost of contract manufacturing services		22,966,000			15,593,000			13,110,000
Gross profit	$	21,391,000		$	11,151,000		$	9,184,000
Revenue from products in research and development	$	329,000		$	37,000		$	107,000
Research and development expense		(59,529,000	)		(42,996,000	)		(27,723,000	)
Selling, general and administrative expense		(18,551,000	)		(18,691,000	)		(17,274,000	)
Other income (expense), net		708,000			141,000			344,000
Net loss	$	(55,652,000	)	$	(50,358,000	)	$	(35,362,000	)

Revenue generated from our contract manufacturing services segment during fiscal years ended April 30, 2016, 2015 and 2014 was derived from a limited number of customers. The percentages below represent revenue derived from each customer (and geographical location) as a percentage of total contract manufacturing services revenue:

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

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

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

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

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

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