ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the fiscal year ended |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the transition period from to |
(State or other jurisdiction of | (I.R.S. Employer | ||||
incorporation or organization) | Identification No.) | ||||
(Zip Code) | |||||
(Address of principal executive offices) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Large accelerated filer | ¨ | Accelerated filer | ¨ | |||||||||||||||||
x | Smaller reporting company | |||||||||||||||||||
Emerging growth company |
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
Item 15. | ||||||||
Item 16. | ||||||||
Signatures |
High | Low | ||||||||||
Fiscal Year Ended April 30, 2022: | |||||||||||
First quarter | $ | 11.25 | $ | 8.45 | |||||||
Second quarter | 11.00 | 9.23 | |||||||||
Third quarter | 10.38 | 7.60 | |||||||||
Fourth quarter | 8.93 | 7.06 |
High | Low | ||||||||||
Fiscal Year Ended April 30, 2021: | |||||||||||
First quarter | $ | 10.89 | $ | 7.46 | |||||||
Second quarter | 9.97 | 7.05 | |||||||||
Third quarter | 13.45 | 8.30 | |||||||||
Fourth quarter | 14.68 | 10.06 |
For the Years Ended April 30, | |||||||||||||||||||||||||||||
2022 | % of Revenue | 2021 | % of Revenue | % Change | |||||||||||||||||||||||||
Oncology services revenue | $ | 49,109 | 100.0 | % | $ | 41,040 | 100.0 | % | 19.7 | % | |||||||||||||||||||
Costs and operating expenses: | |||||||||||||||||||||||||||||
Cost of oncology services | 23,632 | 48.1 | 21,446 | 52.3 | 10.2 | ||||||||||||||||||||||||
Research and development | 9,374 | 19.1 | 7,196 | 17.5 | 30.3 | ||||||||||||||||||||||||
Sales and marketing | 6,379 | 13.0 | 5,520 | 13.5 | 15.6 | ||||||||||||||||||||||||
General and administrative | 9,117 | 18.6 | 6,512 | 15.9 | 40.0 | ||||||||||||||||||||||||
Total costs and operating expenses | 48,502 | 98.8 | 40,674 | 99.2 | 19.2 | ||||||||||||||||||||||||
Income from operations | $ | 607 | 1.2 | % | $ | 366 | 0.8 | % | 65.8 | % |
Report of Independent Registered Public Accounting Firm | F-2 | ||||
Consolidated Balance Sheets | F-3 | ||||
Consolidated Statements of Operations | F-4 | ||||
Consolidated Statement of Changes in Stockholders' Equity | F-5 | ||||
Consolidated Statements of Cash Flows | F-6 | ||||
Notes to Consolidated Financial Statements | F-7 |
Exhibit No. | ||||||||
3.1 | ||||||||
3.1.1 | ||||||||
3.2 | ||||||||
4.1 | Description of Registered Securities (incorporated by reference to Exhibit 4.1 to the Company’s Annual Report on Form 10-K filed July 28, 2020) | |||||||
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
10.4 | ||||||||
10.5 | ||||||||
10.6 | ||||||||
10.7 | ||||||||
10.8 | ||||||||
10.9 | ||||||||
10.10 | ||||||||
10.11 | ||||||||
10.12 | ||||||||
10.13 | ||||||||
10.14 | ||||||||
10.15 | ||||||||
10.16 | ||||||||
10.17 | ||||||||
10.18 | ||||||||
10.19 | ||||||||
10.20 | ||||||||
10.21 | ||||||||
14 | ||||||||
21 | ||||||||
23.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101.INS* | XBRL Instance Document. | |||||||
101.SCH* | XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. |
CHAMPIONS ONCOLOGY, INC. | |||||
July 22, 2022 | /s/ RONNIE MORRIS | ||||
Ronnie Morris | |||||
Chief Executive Officer | |||||
(principal executive officer) |
Signature | Title | Date | ||||||||||||
/s/ RONNIE MORRIS | Chief Executive Officer and Director | July 22, 2022 | ||||||||||||
Ronnie Morris | (principal executive officer) | |||||||||||||
/s/ DAVID MILLER | Chief Financial Officer | July 22, 2022 | ||||||||||||
David Miller | (principal financial and accounting officer) | |||||||||||||
/s/ JOEL ACKERMAN | Director, | July 22, 2022 | ||||||||||||
Joel Ackerman | Chairman of the Board of Directors | |||||||||||||
/s/ DAVID SIDRANSKY | Director | July 22, 2022 | ||||||||||||
David Sidransky | ||||||||||||||
/s/ ROBERT BRAININ | Director | July 22, 2022 | ||||||||||||
Robert Brainin | ||||||||||||||
/s/ SCOTT R. TOBIN | Director | July 22, 2022 | ||||||||||||
Scott R. Tobin | ||||||||||||||
/s/ DANIEL MENDELSON | Director | July 22, 2022 | ||||||||||||
Daniel Mendelson | ||||||||||||||
/s/ PHILIP BREITFELD | Director | July 22, 2022 | ||||||||||||
Philip Breitfeld |
2022 | 2021 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Operating lease right-of-use assets, net | |||||||||||
Property and equipment, net | |||||||||||
Other long term assets | |||||||||||
Goodwill | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued liabilities | |||||||||||
Current portion of operating lease liabilities | |||||||||||
Other current liabilities | |||||||||||
Deferred revenue | |||||||||||
Total current liabilities | |||||||||||
Non-current portion operating lease liabilities | |||||||||||
Other non-current liabilities | |||||||||||
Total liabilities | $ | $ | |||||||||
Stockholders' equity: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders' equity | |||||||||||
Total liabilities and stockholders' equity | $ |
Year Ended April 30, | |||||||||||
2022 | 2021 | ||||||||||
$ | $ | ||||||||||
Costs and operating expenses: | |||||||||||
Research and development | |||||||||||
Sales and marketing | |||||||||||
General and administrative | |||||||||||
Total costs and operating expenses | |||||||||||
Income from operations | |||||||||||
Other expense: | |||||||||||
Other income (expense), net | ( | ||||||||||
Income before income tax expense | |||||||||||
Provision for income tax | |||||||||||
Net income | $ | $ | |||||||||
Net income per common share outstanding | |||||||||||
basic | $ | $ | |||||||||
and diluted | $ | $ | |||||||||
Weighted average common shares outstanding | |||||||||||
basic | |||||||||||
and diluted |
Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||
Balance, April 30, 2020 | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of common stock on exercise of stock options | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance, April 30, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of common stock on exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance, April 30, 2022 | $ | $ | $ | $ | ( | $ |
Year Ended April 30, | |||||||||||
2022 | 2021 | ||||||||||
Operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Stock-based compensation expense | |||||||||||
Depreciation and amortization expense | |||||||||||
Net gain on disposal of equipment | ( | ||||||||||
Operating lease right-of-use assets | |||||||||||
Gain on termination of operating lease | ( | ||||||||||
Allowance for doubtful accounts | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Prepaid expenses and other current assets | ( | ( | |||||||||
Accounts payable | ( | ||||||||||
Accrued liabilities | ( | ||||||||||
Operating lease liabilities | ( | ( | |||||||||
Other non-current liability | |||||||||||
Deferred revenue | |||||||||||
Net cash provided by (used in) operating activities | ( | ||||||||||
Investing activities: | |||||||||||
Purchase of property and equipment | ( | ( | |||||||||
Refund of security deposit | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing activities: | |||||||||||
Proceeds from exercise of options and warrants | |||||||||||
Finance lease payments | ( | ||||||||||
Net cash provided by financing activities | |||||||||||
Increase (decrease) in cash | ( | ||||||||||
Cash, beginning of year | |||||||||||
Cash, end of year | $ | $ | |||||||||
Non-cash financing and investing activities: | |||||||||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | $ | |||||||||
April 30, 2022 | April 30, 2021 | ||||||||||
Accounts receivable | $ | $ | |||||||||
Unbilled services | |||||||||||
Total accounts receivable and unbilled services | |||||||||||
Less: allowance for doubtful accounts | ( | ( | |||||||||
Total accounts receivable, net | $ | $ |
April 30, 2022 | April 30, 2021 | ||||||||||
Deferred revenue | $ | $ |
April 30, | |||||||||||
2022 | 2021 | ||||||||||
Furniture and fixtures | $ | $ | |||||||||
Computer equipment and software | |||||||||||
Laboratory equipment | |||||||||||
Capitalized software development costs | |||||||||||
Assets in progress | |||||||||||
Leasehold improvements | |||||||||||
Total property and equipment | |||||||||||
Less: Accumulated depreciation and amortization | ( | ( | |||||||||
$ | $ |
Year Ended April 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
Pharmacology services | $ | $ | ||||||||||||
Other TOS revenue | ||||||||||||||
Personalized oncology services | ||||||||||||||
Total oncology services revenue | $ | $ |
Year Ended April 30, | |||||||||||
2022 | 2021 | ||||||||||
General and administrative | $ | $ | |||||||||
Sales and marketing | |||||||||||
Research and development | |||||||||||
TOS cost of sales | |||||||||||
Total stock-based compensation expense | $ | $ |
Year Ended April 30, | |||||||||||
2022 | 2021 | ||||||||||
Expected term in years | |||||||||||
Risk-free interest rates | |||||||||||
Volatility | |||||||||||
Dividend yield |
Directors and Employees | Non- Employees | Total | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | ||||||||||||||||||||||||||||||
Outstanding, May 1, 2021 | $ | $ | |||||||||||||||||||||||||||||||||
Granted | $ | ||||||||||||||||||||||||||||||||||
Exercised | ( | ( | |||||||||||||||||||||||||||||||||
Canceled | ( | ( | |||||||||||||||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||||||||||||||
Expired | ( | ( | |||||||||||||||||||||||||||||||||
Outstanding, April 30, 2022 | $ | ||||||||||||||||||||||||||||||||||
Vested and expected to vest as of April 30, 2022 | $ | ||||||||||||||||||||||||||||||||||
Vested as of April 30, 2022 | $ |
Directors and Employees | Non- Employees | Total | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | ||||||||||||||||||||||||||||||
Outstanding, May 1, 2020 | $ | $ | |||||||||||||||||||||||||||||||||
Granted | |||||||||||||||||||||||||||||||||||
Exercised | ( | ( | ( | ||||||||||||||||||||||||||||||||
Canceled | ( | ( | ( | ||||||||||||||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||||||||||||||
Expired | ( | ( | |||||||||||||||||||||||||||||||||
Outstanding, April 30, 2021 | $ | ||||||||||||||||||||||||||||||||||
Vested and expected to vest as of April 30, 2021 | $ | ||||||||||||||||||||||||||||||||||
Vested as of April 30, 2021 | $ |
Year Ended April 30, 2022 | |||||||||||||||||||||||
Federal | State | Foreign | Total | ||||||||||||||||||||
Current | $ | $ | $ | $ | |||||||||||||||||||
Total | $ | $ | $ | $ |
Year Ended April 30, 2021 | |||||||||||||||||||||||
Federal | State | Foreign | Total | ||||||||||||||||||||
Current | $ | $ | $ | $ | |||||||||||||||||||
Total | $ | $ | $ | $ |
Year Ended April 30, | |||||||||||
2022 | 2021 | ||||||||||
Federal income tax at statutory rate | % | % | |||||||||
US vs. foreign tax rate difference | |||||||||||
State income tax, net of federal benefit | |||||||||||
Permanent differences | ( | ( | |||||||||
Increase in uncertain tax position | |||||||||||
Change in valuation allowance | ( | ||||||||||
Income tax expense | % | % |
As of April 30, | |||||||||||
2022 | 2021 | ||||||||||
Accrued liabilities | $ | $ | |||||||||
Right of use, net asset/liability | |||||||||||
Depreciation and amortization | ( | ( | |||||||||
Stock-based compensation expense | |||||||||||
Net operating loss carry-forward | |||||||||||
Total deferred tax assets | |||||||||||
Less: Valuation allowance | ( | ( | |||||||||
Net deferred tax asset | $ | $ |
Year Ended April 30, | |||||||||||
2022 | 2021 | ||||||||||
Balance, beginning of the year | $ | $ | |||||||||
Addition based on tax positions related to prior years | |||||||||||
Payment made on tax positions related to prior years | |||||||||||
Addition based on tax positions related to current year | |||||||||||
Balance, end of year | $ | $ |
Year Ended April 30, | |||||||||||
2022 | 2021 | ||||||||||
Basic and diluted net income per share computation (dollars in thousands): | |||||||||||
Net income attributable to common stockholders | $ | $ | |||||||||
Weighted Average common shares - basic | |||||||||||
Basic net income per share | $ | $ | |||||||||
Diluted income per share computation | |||||||||||
Net income attributable to common stockholders | $ | $ | |||||||||
Income available to common stockholders | $ | $ | |||||||||
Weighted Average common shares | |||||||||||
Incremental shares from assumed exercise of warrants and stock options | |||||||||||
Adjusted weighted average share – diluted | |||||||||||
Diluted net income per share | $ | $ |
Year Ended April 30 | |||||||||||
2022 | 2021 | ||||||||||
Stock options | |||||||||||
Total common stock equivalents |
April 30, 2022 | April 30, 2021 | |||||||
Operating lease right-of-use assets, net | ||||||||
Current portion of operating lease liabilities | ||||||||
Non-current portion of operating lease liabilities |
2023 | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total undiscounted liabilities | |||||
Less: Imputed interest | ( | ||||
Present value of minimum lease payments | $ |
Exhibit No. | ||||||||
3.1 | Amended and Restated Articles of Incorporation (incorporated by reference to Appendix A to the Company’s Information Statement on Schedule 14C filed March 7, 2011) | |||||||
3.1.1 | Certificate of Amendment to Amended and Restated Articles of Incorporation (incorporated by reference to Exhibit 3(i) to the Company’s Current Report on Form 8-K filed April 28, 2015) | |||||||
3.2 | Amended and Restated Bylaws, as amended (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed May 9, 2017) | |||||||
4.1 | Description of Registered Securities (incorporated by reference to Exhibit 4.1 to the Company’s Annual Report on Form 10-K filed July 28, 2020) | |||||||
10.1 | Employment Agreement, dated November 5, 2013, between the Company and Ronnie Morris, M.D. (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed November 12, 2013) | |||||||
10.2 | Amendment to Employment Agreement, dated March 16, 2015, between the Company and Ronnie Morris (incorporated by reference to Exhibit 10.6 to the Company’s Current Report on Form 8-K filed March 20, 2015) | |||||||
10.3 | Offer letter dated June 3, 2013 between the Company and David Miller (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed June 3, 2013) | |||||||
10.4 | 2010 Equity Incentive Plan (incorporated by reference to Appendix B to the Company’s Definitive Information Statement on Schedule 14C filed March 7, 2011) | |||||||
10.5 | Form of Note Purchase Agreement, dated December 1, 2014, between the Company and each of Joel Ackerman and Ronnie Morris (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed December 5, 2014) | |||||||
10.6 | Form of Convertible Promissory Note, dated December 1, 2014, issued to each of Joel Ackerman and Ronnie Morris in connection with the Note Purchase Agreement, dated December 1, 2014 between the Company and each of Joel Ackerman and Ronnie Morris incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed December 5, 2014) | |||||||
10.7 | Amendment No. 1 to Convertible Promissory Note, dated December 1, 2014 issued to Joel Ackerman in connection with the Note Purchase Agreement, dated December , 2014, between the Company and each of Joel Ackerman and Ronnie Morris (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed March 2, 2015) | |||||||
10.8 | Amendment No. 1 to Convertible Promissory Note, dated December 1, 2014 issued to Ronnie Morris in connection with the Note Purchase Agreement, dated December , 2014, between the Company and each of Joel Ackerman and Ronnie Morris (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed March 2, 2015) | |||||||
10.9 | Amended and Restated 2011 Securities Purchase Agreement, dated March 13, 2015, between the Company and each person or entities that are signatories to the Securities Purchase Agreement, dated March 24, 2011, between the Company and each investor identified on the signature pages thereto (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed March 17, 2015) | |||||||
10.10 | Form of warrant issued to each person or entities that are signatories to the Securities Purchase Agreement, dated March 24, 2011, between the Company and each investor identified on the signature page thereto (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed January 30, 2013) | |||||||
10.11 | Amendment No. 1 to warrants, dated March 13, 2015, between the Company and each person or entities that are signatories to the Securities Purchase Agreement, dated March 24, 2011, between the Company and each investor identified on the signature pages thereto (incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K filed March 17, 2015) | |||||||
10.12 | Amended and Restated 2013 Securities Purchase Agreement, dated March 13, 2015, between the Company and each person or entities that are signatories to the Securities Purchase Agreement, dated January 28, 2013, between the Company and each investor identified on the signature pages thereto (incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K filed March 17, 2015) | |||||||
10.13 | Form of warrant issued to each person or entities that are signatories to the Securities Purchase Agreement, dated January 28, 2013, between the Company and each investor identified on the signature page thereto (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed January 30, 2013) | |||||||
10.14 | Amendment No. 1 to warrants, dated March 13, 2015, between the Company and each person or entities that are signatories to the Securities Purchase Agreement, dated January 28, 2013, between the Company and each investor identified on the signature pages thereto (incorporated by reference to Exhibit 10.6 to the Company’s Current Report on Form 8-K filed March 17, 2015) | |||||||
10.15 | Put Right Agreement, dated January 29, 2014, between the Company and each of Joel Ackerman and Ronnie Morris (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed March 6, 2014) | |||||||
10.16 | Securities Purchase Agreement, dated March 11, 2015, between the Company and each investor identified on the signature pages thereto (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed March 12, 2015) | |||||||
10.17 | Amended and Restated Registration Rights Agreement, dated March 13, 2015, between the Company and each person or entities that are signatories to (i) the Securities Purchase Agreement, dated March 24, 2011, between the Company and each investor identified on the signature page thereto, (ii) the Securities Purchase Agreement, dated January 28, 2013, between the Company and each investor identified on the signature page thereto, and (iii) the Securities Purchase Agreement, dated March 11, 2015, between the Company. And each investor identified on the signature page thereto (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed March 17, 2015) | |||||||
10.18 | Form of Investor Warrant issued to each person or entities that are signatories to the Securities Purchase Agreement, dated March 11, 2015, between the Company and each investor identified on the signature page thereto (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed March 17, 2015) | |||||||
10.19 | Option Exchange Agreement, dated March 16, 2015, between the Company and Joel Ackerman (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed March 20, 2015) | |||||||
10.20 | Option Exchange Agreement, dated March 16, 2015, between the Company and Ronnie Morris (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed March 20, 2015) | |||||||
10.21 | Option Exchange Agreement, dated March 16, 2015, between the Company and David Miller (incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K filed March 20, 2015) | |||||||
14 | Code of Ethics (incorporated by reference to Exhibit 14 of the April 30, 2008 Form 10-KSB) | |||||||
21 | List of Subsidiaries (incorporated by reference to Exhibit 21 of the Company's Form 10-K filed July 28, 2017) | |||||||
23.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101.INS* | XBRL Instance Document. | |||||||
101.SCH* | XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. |
/s/ Ronnie Morris | |||||
Ronnie Morris | |||||
Chief Executive Officer | |||||
(Principal Executive Officer) |
/s/ David Miller | |||||
David Miller | |||||
Chief Financial Officer | |||||
(Principal Financial Officer) |
/s/ Ronnie Morris | |||||
Ronnie Morris | |||||
Chief Executive Officer | |||||
(Principal Executive Officer) | |||||
/s/ David Miller | |||||
David Miller | |||||
Chief Financial Officer | |||||
(Principal Financial Officer) |
Audit Information |
12 Months Ended |
---|---|
Apr. 30, 2022 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 274 |
Auditor Name | EisnerAmper LLP |
Auditor Location | Iselin, New Jersey |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Apr. 30, 2022 |
Apr. 30, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 13,522,441 | 13,414,066 |
Common stock, shares outstanding (in shares) | 13,522,441 | 13,414,066 |
Organization and Basis of Presentation |
12 Months Ended |
---|---|
Apr. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Background Champions Oncology, Inc. (the “Company”), is engaged in drug discovery and development through data-driven research strategies and innovative pharmacology, biomarker and data platforms. The Company’s TumorGraft Technology Platform is an approach to personalizing cancer care based upon the implantation of human tumors in immune-deficient mice. The Company provides a technology platform to pharmaceutical and biotechnology companies using proprietary TumorGraft studies, which the Company believes may be predictive of how drugs may perform in clinical settings. Utilizing the TumorGraft Technology Platform (the "Platform"), a comprehensive Bank of unique, well characterized "Patient Derived XenoGrafts" (PDX) models, the Company offers multiple services to pharmaceutical and biotechnology companies seeking personalized approaches to drug development. By performing studies to predict the efficacy of oncology drugs, our Platform is designed to facilitate drug discovery with lower costs and increased speed of drug development as well as increased adoption of existing drugs. The Company has three operating subsidiaries: Champions Oncology (Israel), Limited and Champions Biotechnology U.K., Limited, and Champions Oncology S.R.L. For the years ended April 30, 2022 and 2021, there were no revenues earned by these subsidiaries. Basis of Presentation |
Summary of Significant Accounting Policies |
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Apr. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. Foreign Currency The Company’s foreign subsidiaries functional currency is the U.S. dollar. Transaction gains and losses are recognized in earnings. The Company is subject to foreign exchange rate fluctuations in connection with the Company’s international operations. Foreign currency balances are translated at each month end to US dollars, and any resulting gain or loss is recognized in our results of operations, as the amounts are not material. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include, among other things, accounts receivable realization, revenue recognition, valuation allowance for deferred tax assets, recoverability of capitalized software development costs, and stock-based compensation and warrant assumptions. We base our estimates on historical experience, our observance of trends in particular areas and information or valuations and various other assumptions that we believe to be reasonable under the circumstances and which form the basis for making judgments about the carrying value of assets and liabilities that may not be readily apparent from other sources. Actual amounts could differ significantly from amounts previously estimated. Cash and Cash Equivalents The Company considers only those investments which are highly liquid, readily convertible to cash, and with original maturities of three months or less to be cash equivalents. As of April 30, 2022 and 2021 the Company had cash balances of $9.0 million and $4.7 million, respectively, and no cash equivalents. Liquidity Our liquidity needs have typically arisen from the funding of our research and development programs and the launch of new products, working capital requirements, and other strategic initiatives. In the past, we have met these cash requirements through our cash on hand, working capital management, proceeds from certain private placements and public offerings of our securities, and sales of products and services. For the year ended April 30, 2022, the Company had net income of approximately $548,000, an accumulated deficit of approximately $72.0 million, working capital of $2.2 million and cash of $9.0 million. We believe that our cash on hand, together with expected cash flows from operations, are adequate to fund operations through at least August 2023. Should the Company be required to raise additional capital, there can be no assurance that management would be successful in raising such capital on terms acceptable to us, if at all. Fair Value The carrying value of cash, accounts receivable, prepaid expenses, and other current assets, accounts payable, and accrued liabilities approximate their fair value based on the liquidity or the short-term maturities of these instruments. The fair value hierarchy promulgated by GAAP consists of three levels: •Level one — Quoted market prices in active markets for identical assets or liabilities; •Level two — Inputs other than level one inputs that are either directly or indirectly observable; and •Level three — Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. The Company has no assets or liabilities that are measured at fair value on a recurring and/or non-recurring during the years ended April 30, 2022 and 2021. Property and Equipment Property and equipment is recorded at cost and primarily consists of laboratory equipment, furniture and fixtures, computer hardware and software, and internally developed software. Assets in progress include equipment or software not yet placed in service. Depreciation and amortization is calculated on a straight-line basis over the estimated useful lives of the various assets ranging from to seven years. Refer to Footnote 4, "Property and Equipment" for a detailed discussion. Leases The Company accounts for its leases under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 842, Leases ("ASC 842"). Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the consolidated balance sheet as both a right-of-use ("ROU") asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company’s incremental borrowing rate. As the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease liabilities are increased by interest and reduced by payments each period, and the right-of-use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right-of-use asset result in straight-line rent expense over the lease term. Impairment of Long-Lived Assets Impairment losses are to be recognized when the carrying amount of a long-lived asset is not recoverable or exceeds its fair value. The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that a carrying value may not be recoverable. The Company uses estimates of future cash flows over the remaining useful life of a long- lived asset or asset group to determine the recoverability of the asset. These estimates only include the net cash flows directly associated with, and that are expected to arise as a direct result of, the use and eventual disposition of the asset or asset group. The Company has not recognized any impairment losses for the Company’s long-lived assets for the years ending April 30, 2022 and 2021. Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. The Company evaluates the carrying value of goodwill annually in connection with the annual budgeting and forecast process and also between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit to which goodwill was allocated to below its carrying amount. Such circumstances could include, but are not limited to: (1) a significant adverse change in legal factors, market conditions, or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. When evaluating goodwill for impairment, we may first perform an assessment qualitatively whether it is more likely than not that a reporting unit’s carrying amount exceeds its fair value, referred to as a “step zero” approach. Subsequently (if necessary after step zero), an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying value. Under FASB's Accounting Standards Update ("ASU") 2014-02, Topic 350, "Intangibles—Goodwill and Other" goodwill impairment is measured as the excess of the carrying amount of the reporting unit over its fair value. The impairment evaluation test involves comparing the current fair value of each business unit to its carrying value, including goodwill. Fair value is typically estimated using a discounted cash flow analysis, which requires the Company to estimate the future cash flows anticipated to be generated by the business unit being tested for impairment as well as to select a risk-adjusted discount rate to measure the present value of the anticipated cash flows. When determining future cash flow estimates, the Company considers historical results adjusted to reflect current and anticipated operating conditions. The Company estimates cash flows for the business unit over a discrete period (typically four or five years) and the terminal period (considering expected long term growth rates and trends). Estimating future cash flows requires significant judgment by management in such areas as future economic conditions, industry-specific conditions, product pricing, and necessary capital expenditures. The use of different assumptions or estimates for future cash flows or significant changes in risk-adjusted discount rates due to changes in market conditions could produce substantially different estimates of the fair value of the business unit. The Company has one reportable segment. The Company assesses goodwill impairment by business unit. Judgments regarding the existence of impairment indicators are based on legal factors, market conditions and operational performance of the businesses. Future events, including but not limited to continued declines in economic activity, loss of contracts or a significant number of customers, or a rapid increase in costs or capital expenditures, could cause us to conclude that impairment indicators exist and that goodwill is impaired. For the year ended April 30, 2022, the Company's annual assessment did not result in any impairment indicators. Deferred Revenue Deferred revenue represents payments received in advance of products to be delivered or services to be performed. When products are delivered and/or services are performed, deferred revenue is recognized as earned. Deferred revenue is expected to be recognized within one year. Other Non-Current Liabilities Other non-current liabilities represent amounts for uncertain tax positions relating to one of our foreign entities and a financing lease of laboratory equipment in exchange for a lab supplies purchasing commitment. Cost of Oncology Services Cost of oncology services relates primarily to our Translational Oncology Solutions ("TOS") business unit. TOS costs consist of direct costs related to laboratory supplies, mice purchases, and maintenance costs for studies completed internally as well as charges from Contract Research Organization's for studies handled externally. Indirect costs include salaries and other payroll related costs of compensation for personnel directly engaged in providing TOS products and services. All costs of performing studies in-house are expensed as incurred. All costs of performing studies from external sources, are expensed when incurred. Research and Development Research and development costs represent both costs incurred internally for research and development activities, including personnel costs, mice purchases, and maintenance, as well as costs incurred externally to facilitate research activities, such as tumor tissue procurement and characterization expenses. All research and development costs are expensed as incurred. Sales and Marketing Sales and marketing expenses represent costs incurred to promote the Company’s products offered, including salaries, benefits and related costs of our sales and marketing personnel, and represent costs of advertising and other selling and marketing expenses. All sales and marketing costs, including advertising costs, are expensed as incurred. Earnings Per Share Basic net income or loss per share is computed by dividing the net income or loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted-average number of shares of common stock plus dilutive potential common stock considered outstanding during the period. Such dilutive shares consist of incremental shares that would be issued upon exercise of the Company’s common stock purchase warrants and stock options. Stock-based Payments The Company typically recognizes expense for stock-based payments based on the fair value of awards on the date of grant. The Company uses the Black-Scholes option pricing model to estimate fair value. The Black-Scholes option valuation model was developed for use in estimating the fair value of short-traded options that have no vesting restrictions and are fully transferable. The option pricing model requires the Company to estimate certain key assumptions such as expected life, volatility, risk free interest rates and dividend yield to determine the fair value of stock-based awards. These assumptions are based on historical information and management judgment. The risk-free interest rate used is based on the United States treasury security rate with a term consistent with the expected term of the award at the time of the grant. Since the Company has limited option exercise history, it has generally elected to estimate the expected life of an award based upon the Securities and Exchange Commission-approved “simplified method” noted under the provisions of Staff Accounting Bulletin No. 107 with the continued use of this method extended under the provisions of Staff Accounting Bulletin No. 110. Estimated volatility is based upon the historical volatility of the Company's common stock. The Company does not anticipate paying a dividend, and therefore, no expected dividend yield was used. The Company expenses stock-based payments over the period that the awards are expected to vest. In the event of forfeitures, compensation expense is adjusted. The Company expenses modification charges in the period of modification and, if required, over the remaining period the awards are expected to vest. The Company will report cash flows resulting from tax deductions in excess of the compensation cost recognized from those options (excess tax benefits) as financing cash flows, if they should arise. Income Taxes Deferred income taxes have been provided to show the effect of temporary differences between the recognition of expenses for financial and income tax reporting purposes and between the tax basis of assets and liabilities, and their reported amounts in the consolidated financial statements. In assessing the realizability of deferred tax assets, the Company assesses the likelihood that deferred tax assets will be recovered through tax planning strategies or from future taxable income, and to the extent that recovery is not likely or there is insufficient operating history, a valuation allowance is established. The Company adjusts the valuation allowance in the period management determines it is more likely than not that net deferred tax assets will or will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. As of April 30, 2022 and 2021, the Company provided a valuation allowance for all net deferred tax assets, as recovery is not more likely than not based on an insufficient history of earnings. The Company reflects tax benefits only if it is more likely than not that we will be able to sustain the tax position, based on its technical merits. If a tax benefit meets this criterion, it is measured and recognized based on the largest amount of benefit that is cumulatively greater than 50% likely to be realized. As of April 30, 2022 and 2021 the Company has recorded $181,000 of liabilities related to uncertain tax positions relative to one of its foreign operations. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company accrued $0 and $3,000, for interest and penalties on the Company’s statement of operations for the years ended April 30, 2022 and 2021, respectively. The Company does not anticipate any significant unrecognized tax benefits to be recorded during the next 12 months. For the year ended April 30, 2022 and 2021, the Company recognized a provision for income taxes of $35,000 and $75,000, respectively. These amounts are mainly attributable to taxable income earned in Israel relating to transfer pricing. Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. The objective of the standard is to establish a single comprehensive revenue recognition model that is designed to create greater comparability of financial statements across industries and jurisdictions. Under this standard, companies recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. All revenue is generated from contracts with customers. The Company recognizes revenue when control of these services is transferred to the customer in an amount, referred to as the transaction price, that reflects the consideration to which the Company is expected to be entitled in exchange for those services. The Company determines revenue recognition utilizing the following five steps: (1) identification of the contract with a customer, (2) identification of the performance obligations in the contract (promised goods or services that are distinct), (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations, and (5) recognition of revenue when, or as, the Company transfers control of the product or service for each performance obligation. The Company records revenues net of any tax assessments by governmental authorities, such as value added taxes, that are imposed on and concurrent with specific revenue generating transactions. The majority of the Company's revenue arrangements are service contracts that are completed within a year or less. There are a few contracts that range in duration between 1 and 3 years. Substantially all of the Company's performance obligations, and associated revenue, are transferred to the customer over time. Most of the Company's contracts can be terminated by the customer without cause. In the event of termination, the Company's contracts provide that the customer pay the Company for services rendered through the termination date. The Company generally receives compensation based on a predetermined invoicing schedule relating to specific milestones for that contract. Amendments to contracts are common. The Company evaluates each amendment which meets the criteria of a contract modification under ASC 606. Each modification is further evaluated to determine whether the contract modification should be accounted for as a separate contract or as a continuation of the original agreement. The Company accounts for amendments as a separate contract as they meet the criteria under ASC 606-10-25-12. Pharmacology Study and Other Services The Company generally enters into contracts with customers to provide oncology services with payments based on fixed-fee arrangements. At contract inception, the Company assesses the services promised in the contracts with customers to identify the performance obligations in the arrangement. The Company's fixed-fee arrangements for oncology services are considered a single performance obligation because the Company provides a highly-integrated service. The Company recognizes revenue over time using a progress-based input method since there is no single output measure that would fairly depict the transfer of control over the life of the performance obligation. Revenue is recognized for the single performance obligation over time due to the Company's right to payment for work performed to date and the performance does not create an asset with an alternative use. The Company recognizes revenue as portions of the overall performance obligation are completed as this best depicts the progress of the performance obligation. Incremental Costs of Obtaining a Contract (Sales Commissions) Under ASC 606, the costs of obtaining a contract can be expensed immediately, rather than capitalized and amortized, if the amortization period is one year or shorter. Sales commissions for the Company represent contract costs with a term of one year or less. Therefore, under ASC 606, the Company elected the practical expedient to expense these costs as incurred. Variable Consideration In some cases, contracts provide for variable consideration that is contingent upon the occurrence of uncertain future events, such as the success of the initial performance obligation. Variable consideration is estimated at the expected value or at the most likely amount depending on the type of consideration. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The estimate of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of its anticipated performance and all information (historical, current and forecasted) that is reasonably available to the Company. Trade Receivables, Unbilled Services and Deferred Revenue In general, billings and payments are established by contractual provisions including predetermined payment schedules, which may or may not correspond to the timing of the transfer of control of the Company's services under the contract. In general, the Company's intention in its invoicing (payment terms) is to maintain cash neutrality over the life of the contract. Upfront payments, when they occur, are intended to cover certain expenses the Company incurs at the beginning of the contract. Neither the Company nor its customers view such upfront payments and contracted payment schedules as a means of financing. Unbilled services primarily arise when the revenue recognized exceeds the amount billed to the customer. Such situations occur due to divergences between revenue recognition and the invoicing milestones which are based on predetermined payment terms. Deferred revenue consists of unearned payments received in excess of revenue recognized. As the contracted services are subsequently performed and the associated revenue recognized, the deferred revenue balance is reduced by the amount of the revenue recognized during the period. Deferred revenue is classified as a current liability on the consolidated balance sheet as the Company expects to recognize the associated revenue in less than one year. Accounting Pronouncements Being Evaluated In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses". This update requires immediate recognition of management’s estimates of current expected credit losses ("CECL"). Under the prior model, losses were recognized only as they were incurred. The new model is applicable to all financial instruments that are not accounted for at fair value through net income. The standard is effective for fiscal years beginning after December 15, 2022 for public entities qualifying as smaller reporting companies. Early adoption is permitted. We are currently assessing the impact of this update on our consolidated financial statements and have not yet determined the impact on our consolidated financial statements. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (ASC 740) — Simplifying the Accounting for Income Taxes. ASU 2019-12 which modifies ASC 740 to simplify the accounting for income taxes. The ASU removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2020. We adopted this guidance on May 1, 2021. The adoption of this ASU did not have a material impact is reflected in the Company's current year consolidated financial statements.
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Accounts Receivable, Unbilled Services and Deferred Revenue |
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Accounts Receivable, Unbilled Services and Deferred Revenue | Accounts Receivable, Unbilled Services and Deferred Revenue Accounts receivable and unbilled services were as follows (in thousands):
Deferred revenue was as follows (in thousands):
Deferred revenue is shown as a current liability on the Company's balance sheet. As of April 30, 2020 unbilled services was $2.4 million and deferred revenue was $5.8 million.
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Property and Equipment |
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Property and Equipment | Property and Equipment Property and equipment consisted of the following (in thousands):
Depreciation and amortization expense was $1.6 million and $1.2 million for the years ended April 30, 2022 and 2021, respectively. Depreciation and amortization expense, excluding expense recorded under finance leases, was $1.5 million and $925,000 for the years ended April 30, 2022 and 2021. As of April 30, 2022 and 2021, property, plant and equipment included gross assets held under finance leases of $713,000 and $343,000, respectively. Related depreciation expense for these assets was $87,000 and $124,000 for the years ended April 30, 2022 and 2021. Capitalized software development costs under a hosting arrangement The Company accounts for the cost of computer software obtained or developed for internal use as well as the software development and implementation costs associated with a hosting arrangement ("internal-use software") that is a service contract in accordance and with ASC 350, Intangibles - Goodwill and Other ("ASC-350"). We capitalize certain costs in the development of our internal-use software when the preliminary project stage is completed and it is probable that the project itself will be completed and the software will perform as intended. These capitalized costs include personnel and related expenses for employees and costs of third-party consultants who are directly associated with and who devote time to these internal-use software projects. Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended purpose. Costs incurred for significant upgrades, increased functionality, and enhancements to the Company's internal-use software solutions are also capitalized. Costs incurred for training, maintenance, and minor modifications are expensed as incurred. Capitalized software development costs are amortized using the straight-line method over an estimated useful economic life of three years. The Company has capitalized development and implementation costs in accordance with accounting guidance for its Lumin Bioinformatics platform ("Lumin"). Lumin is the Company's new oncology data-driven software program and data tool which is operates as Software as a Service (SaaS). These capitalized costs represent salaries, including direct payroll-related costs, certain software development consultant expenses and molecular sequencing programming costs incurred in the engineering and coding of the software development. Capitalized costs are classified as assets in progress during the development process until development is complete and the asset is available for sale. The initial version of the Lumin platform was launched during fiscal year 2021, at which time initial capitalization ceased and amortization commenced. The total Lumin assest placed into service and available for sale as of July 31, 2020 was $484,000. The Company continued to develop increased functionality, expand product design and usability, and add enhancements to the Lumin platform. In accordance with accounting guidance, these costs were capitalized. This developmental work did not render the initial released version to be obsolete or diminished in value but, rather, added to the base functionality of the existing platform. During the third quarter of fiscal year 2022, these capitalized costs were placed into service as the enhanced version was launched and made available for sale. The total cost of the enhanced Lumin asset placed into service and available for sale as of January 31, 2022 was $1.4 million, bringing the total capitalized gross asset investment to $1.9 million. Amortization expense related to this asset addition was $317,000 and $134,000 for the years ended April 30, 2022 and 2021, respectively. Finance Lease During fiscal 2020, the Company entered into a finance lease for laboratory equipment. The lease had costs of approximately $231,000, at inception, through November 2020. This lease expired December 2020. Prior to expiration, the monthly finance lease payment was approximately $19,000. The future minimum lease payments remaining under this finance lease at April 30, 2021 and 2020 were zero and $135,000, respectively. The present value of minimum future obligations was calculated based on interest rate of 4.75%. Depreciation and amortization expense related to this finance lease was zero and $124,000 for the years ended April 30, 2022 and 2021, respectively. During fiscal 2022, the Company recognized a finance lease for laboratory equipment. This equipment was obtained as the result of a laboratory supplies purchase commitment with costs of approximately $370,000 at inception through December 2025. Cash payments for this lease are in the form of consideration for purchasing lab supplies under a purchase commitment agreement. The present value of the minimum future obligations of $370,000 was calculated based on an interest rate of 3.25%. Depreciation and amortization expense related to this finance lease was $87,000 and zero for the years ended April 30, 2022 and 2021, respectively.
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Revenue from Contracts with Customers |
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Revenue from Contracts with Customers | Revenue from Contracts with Customers Oncology Services Revenue The following table represents disaggregated revenue for the twelve months ended April 30, 2022 and 2021:
Other TOS revenue represents additional services provided to the Company's pharmaceutical and biotechnology customers, specifically flow cytometry services and SaaS provided via our Lumin Bioinformatics software. Contract Balances Contract assets include unbilled amounts typically resulting from revenue recognized in excess of the amounts billed to the customer for which the right to payment is subject to factors other than the passage of time. These amounts may not exceed their net realizable value. Contract assets are classified as current. Contract liabilities consist of customer payments received in advance of performance and billings in excess of revenue recognized, net of revenue recognized from the balance at the beginning of the period. Contract assets and liabilities are presented on the balance sheet on a net contract-by-contract basis at the end of each reporting period. Refer to Note 3 for related balances.
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Significant Customers |
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Apr. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Significant Customers | Significant Customers For the years ended April 30, 2022 and 2021, one and none of our customers accounted for more than 10% of our total revenue, respectively. |
Commitments and Contingencies |
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Apr. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters The Company is not currently party to any legal matters to its knowledge. The Company is not aware of any other matters that would have a material impact on the Company’s financial position or results of operations. Registration Payment Arrangements The Company has entered into an Amended and Restated Registration Rights Agreement in connection with the March 2015 Private Placement. This Amended and Restated Registration Rights Agreement contains provisions that may call for the Company to pay penalties in certain circumstances. This registration payment arrangement primarily relates to the Company’s ability to file a registration statement within a particular time period, have a registration statement declared effective within a particular time period and to maintain the effectiveness of the registration statement for a particular time period. The Company has not accrued any liquidated damages associated with the Amended and Restated Registration Right Agreement as the Company has filed the required registration statement and anticipates continued compliance with the agreement. Royalties The Company contracts with third-party vendors to license tumor samples for development into PDX models and use in our TOS business. These types of arrangements have an upfront fee ranging from approximately nil to $30,000 per tumor sample depending on the successful growth of the tumor model and ability to develop them into a sellable product. The upfront costs are expensed as incurred. In addition, under certain agreements, for a limited period of time, the Company is subject to royalty payments if the licensed tumor models are used for sale in our TOS business, ranging from 2% to 20% of the contract price after recouping certain initiation costs. Some of these arrangements also set forth an annual minimum royalty due regardless of tumor models used for sale. For the years ended April 30, 2022 and 2021, we have recognized approximately $401,000 and $127,000 in expense related to these royalty arrangements, respectively.
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Stock-based Payments |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Payments | Stock-based Payments Stock-based compensation in the amount of $912,000 and $598,000 was recognized for years ended April 30, 2022 and 2021, respectively. Stock-based compensation costs were recorded as follows (in thousands):
The Company has in place a 2021 Equity Incentive Plan, 2010 Equity Incentive Plan and 2008 Equity Incentive Plan ("the Plans"). In general, these plans provide for stock-based compensation to the Company’s employees, directors and non-employees. The plans also provide for limits on the aggregate number of shares that may be granted, the term of grants and the strike price of option awards. 2021 Equity Incentive Plan As part of the 2021 Annual Shareholders Meeting, shareholders approved the adoption of the 2021 Equity Incentive Plan (“2021 Equity Plan”). The purpose of the 2021 Equity Plan is to grant (i) Non-statutory Stock Options; (ii) Incentive Stock Options; (iii) Restricted Stock Awards; and/or (iv) Stock Appreciation Rights (collectively, stock-based compensation) to its employees, directors and non-employees. Total stock awards under the 2021 Equity Plan shall not exceed 2 million shares of common stock. Options and Stock Appreciation Rights expire no later than ten years from the date of grant and the awards vest as determined by the Board of Directors. Options and Stock Appreciation Rights have a strike price not less than 100% of the fair market value of the common stock subject to the option or right at the date of grant. As of April 30, 2022, approximately 1.8 million shares were left to issue under this plan. 2010 Equity Incentive Plan On February 18, 2011, shareholders owning a majority of the issued and outstanding shares of the Company executed a written consent approving the 2010 Equity Incentive Plan (“2010 Equity Plan”). The purpose of the 2010 Equity Plan is to grant (i) Non-statutory Stock Options; (ii) Restricted Stock Awards; and (iii) Stock Appreciation Rights (collectively, stock-based compensation) to its employees, directors and non-employees. Total stock awards under the 2010 Equity Plan shall not exceed 30,000,000 shares of common stock. Options and Stock Appreciation Rights expire no later than ten years from the date of grant and the awards vest as determined by the Board of Directors. Options and Stock Appreciation Rights have a strike price not less than 100% of the fair market value of the common stock subject to the option or right at the date of grant. After February 2021, no more shares were available to be issued from this plan. 2008 Equity Incentive Plan The Company has previously granted (i) Non-statutory Stock Options; (ii) Restricted Stock Awards; and (iii) Stock Appreciation Rights (collectively, stock-based compensation) to its employees, directors and non-employees under a 2008 Equity Incentive Plan (the “2008 Equity Plan”). Such awards may be granted by the Company’s Board of Directors. Options granted under the 2008 Equity Plan expire no later than ten years from the date of grant and the awards vest as determined by the Board of Directors. For stock-based payments to non-employee consultants under the Plans, the fair value of the stock-based consideration issued is used to measure the transaction, as management believes this to be a more reliable measure of fair value than the services received. The fair value of the award is expensed over the period service is provided to the Company; however, it is ultimately measured at the price of the Company’s common stock or the fair value of stock options using the Black-Scholes valuation model on the date that the commitment for performance by the non-employee consultant has been reached or performance is complete, which is generally the vesting date of the award. After 2018, no more shares were available to be issued from this plan. Director Compensation Plan On December 12, 2013, the Compensation Committee of the Board of Directors of the Company adopted changes to the Director Compensation Plan of 2010 (the “Director Plan”) effective December 1, 2013. Under the Director Plan, independent directors of the Company are entitled to an annual award of a five-year option to purchase 8,333 shares of the Company’s common stock, and the Chairman of the Board of the Company is entitled to an annual award of a five-year option to purchase 16,667 shares of the Company’s common stock. Independent directors who serve as chairperson of a committee will also receive an annual grant of a five-year option to purchase 1,667 shares of the Company’s common stock. All options issued under the Director Plan vest quarterly at a rate of 25%. Option grants will typically be issued after the annual shareholder meeting which will generally be held in October of each year. New directors will receive a grant upon joining the Board equal to the pro-rata annual grant for the remainder of the year. Options issued under the Director Plan are now issued pursuant to the 2021 Equity Plan. Stock Option Grants Black-Scholes assumptions used to calculate the fair value of options granted during the years ended April 30, 2022 and 2021 were as follows:
The weighted average fair value of stock options granted during the years ending April 30, 2022 and 2021, was $5.56 and $5.11, respectively. The Company’s stock options activity and related information as of and for the years ended April 30, 2022 and 2021 is as follows:
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Provision for Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for Income Taxes | Provision for Income Taxes The components of the provision for income taxes are as follows (in thousands):
A reconciliation between the Company’s effective tax rate and the United States statutory tax rate for the years ended April 30, 2022 and 2021 is as follows:
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of April 30, 2022 and 2021 consist of the following (in thousands):
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The Act contains several new or changed income tax provisions, including but not limited to the following: increased limitation threshold for determining deductible interest expense; class life changes to qualified improvements (in general, from 39 years to 15 years); and the ability to carry back net operating losses incurred from tax years 2018 through 2020 up to the five preceding tax years. The Company has evaluated the new tax provisions of the CARES Act and determined the impact to be either immaterial or not applicable. Management has evaluated the available evidence about future tax planning strategies, taxable income, and other possible sources of realization of deferred tax assets and has established a full valuation allowance against its net deferred tax assets as of April 30, 2022 and 2021. For the years ended April 30, 2022 and 2021, the Company recorded a valuation allowance of $15.5 million and $15.3 million, respectively. As of April 30, 2022 and 2021, the Company’s estimated U.S. net operating loss carry-forwards were approximately $48.0 million and $46.9 million, respectively. Net operating losses generated prior to May 1, 2018 have a 20-year carryforward and will begin expiring in 2025 for federal and 2031 for state purposes. Losses generated in the fiscal years since the year ended April 30, 2019 may be carried forward indefinitely. A valuation allowance has been recorded against all of these loss carryforwards. Under the provisions of the Internal Revenue Code, certain substantial changes in the Company’s ownership may result in a limitation on the amount of net operating losses that may be utilized in future years. During the fiscal year ended April 30, 2013, approximately $12.0 million of the Company’s net operating losses became subject to limitation under Internal Revenue Code Section 382 in connection with an ownership change on January 28, 2013. As a result of the ownership change, the Company’s annual limitation on its use of net operating loss carry-forwards is approximately $432,000. The Company files income tax returns in various jurisdictions with varying statutes of limitations. As of April 30, 2022, the earliest tax year still subject to examination for state purposes is fiscal 2018. The Company’s tax years for periods ending April 30, 2002 and forward are subject to examination by the United States and certain states due to the carry-forward of unutilized net operating losses. The following table indicates the changes to the Company’s uncertain tax positions for the period and years ended April 30, 2022 and 2021 in thousands:
As of April 30, 2022 and 2021, the above amounts of $181,000 for each fiscal year were included in other long-term liabilities.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per ShareA reconciliation of net income and number of shares used in computing basic and diluted earnings per share was as follows:
The following table reflects the total potential stock-based instruments outstanding at April 30, 2022 and 2021 that could have an effect on the future computation of dilution per common share. These figures were not included in the above calculation as, to do so, would be antidilutive:
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Related Party Transactions |
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Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Related party transactions include transactions between the Company and its shareholders, management, or affiliates. The following transactions were in the normal course of operations and were measured at the exchange amount, which is the amount of consideration established and agreed to by the parties. Consulting Services For both years ended April 30, 2022 and 2021, the Company paid a member of its Board of Directors $36,000 and $54,000 for consulting services unrelated to his duties as a board member. During the years ended April 30, 2022 and 2021, the Company paid another board member $17,000 and $5,500, respectively, for consulting services unrelated to his duties as a board member. All of the amounts paid to these related parties have been recognized in expense in the period the services were performed.
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Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | LeasesThe Company accounts for its leases under ASC 842. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases, and are recorded on the consolidated balance sheet as both an operating lease ROU asset and operating lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company’s incremental borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and the right of use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right of use asset result in straight-line rent expense over the lease term. Variable lease expenses, if any, are recorded when incurred. The Company has elected to apply the short-term lease exemption practical expedient for each class of underlying assets and excludes short-term leases having initial terms of 12 months or less. The Company recognizes rent expense on a straight-line basis over the lease term for these short-term leases. The Company has determined that no material embedded leases exist. Under ASC 842, the Company determines if an arrangement is a lease at inception. ROU assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Operating Leases The Company currently leases certain office equipment and its office and laboratory facilities under non-cancelable operating leases. Rent expense for operating leases is recognized on a straight-line basis over the lease term from the lease commencement date through the scheduled expiration date. Rent expenses totaled $1.9 million and $1.3 million for the years ended April 30, 2022 and 2021, respectively. The Company leases the following facilities: •One University Plaza, Suite 307, Hackensack, New Jersey 07601, which, since November 2011, serves as the Company’s corporate headquarters. The lease was renewed during fiscal 2022 and expires in November 2026. The Company recognized $88,000 and $91,000 of rent expense relative to this lease for fiscal 2022 and 2021, respectively. •1330 Piccard Drive Suite 025, Rockville, MD 20850, which consists of laboratory and office space where the Company conducts operations related to its primary service offerings. The Company executed this lease (the "Original Premises") on January 11, 2017. The operating commencement date was August 11, 2017. This lease originally expired in August 2028. ◦On March 30, 2020, the Company executed the first amendment to this lease to expand the existing premises at 1330 Piccard Drive, Suite 025 ("Expansion Premises") to add on Suites 050 and 104. This amendment also extended the current lease term by six months. The Expansion Premises operating lease commencement date was June 1, 2020 and, under the amendment, both leases expire February 28, 2029. ◦In accordance with ASC 842, the Company evaluated the first amendment and also performed a reassessment of the existing lease for Suite 025 to determine the impact of the six-month term extension. As a result of this assessment, the Company recognized an additional operating ROU asset and related operating lease liability for Suite 025 of $118,000 and $125,000, respectively, as well as an incremental net rent expense of $8,000 during the three months ended July 31, 2020. The Company did not recognize the incremental rental expense under this amendment during fiscal 2020 as the Expansion Premises lease commencement date was during fiscal 2021. ◦Upon the Expansion Premises operating lease commencement date (June 1, 2020), the Company recognized an operating ROU asset and related operating lease liability for Suites 050 and 104 of $3.8 million, each, respectively. ◦On December 22, 2020, the Company executed the second amendment to this lease to expand the existing premises at 1330 Piccard Drive, Suites 025, 050, and 104 ("Additional Expansion Premises") and add on Suite 201. The Additional Expansion Premises operating lease commencement date was April 1, 2021 and, under the second amendment, reaffirms that all three leases expire February 28, 2029. Upon the Additional Expansion Premises operating lease commencement date (April 1, 2021), the Company also recognized an operating ROU asset and related operating lease liability for Suite 201 of $3.3 million, each, respectively. ◦For the leases related to the premises at Piccard Drive, the Company recognized $1.7 million and $1.2 million of rental expense for fiscal 2022 and 2021, respectively. •1405 Research Boulevard, Suite 125, Rockville, Maryland 20850 (“New Location”), which consisted of laboratory and office space where the Company conducted operations related to its primary service offerings. The Company executed this lease on November 1, 2018. The operating commencement date was January 17, 2019. This lease was set to expire in April 2024. The Company terminated this lease on June 30, 2020 and transitioned its activities from this location to the Expansion Premises, as defined above, during the first quarter of fiscal 2021. Upon lease termination, the Company recognized a decrease in the related operating ROU asset and operating lease liability of approximately $850,000 and $926,000, respectively, as well as a gain on lease termination of $76,000. The Company recognized zero and $43,000 of rental expense for fiscal 2022 and 2021, respectively. •VIA LEONE XIII, 14, Milan, Italy, which consists of laboratory and office space where the Company conducts operations related to its flow cytometry service offerings. The Company executed the lease for its laboratory space in June 2021, and commenced occupancy during the three months ended October 31, 2021. This lease expires May 2023. The Company executed the lease for its office space on October 1, 2021. This lease expires September 2027. ◦The Company recognized an operating ROU asset and related operating lease liability for the lab and office space of $205,000 each, respectively. ◦The Company recognized rental costs associated with these leases of $81,000 and zero for fiscal 2022 and 2021, respectively. ROU assets and lease liabilities related to our current operating leases are as follows (in thousands):
As of April 30, 2022, the weighted average remaining operating lease term and the weighted average discount rate were 6.7 years and 5.73%, respectively. Future minimum lease payments due each fiscal year as follows (in thousands):
Refer to Note 4, Property and Equipment, for more information on financing leases.
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Summary of Significant Accounting Policies (Policies) |
12 Months Ended |
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Apr. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation.
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Foreign Currency | Foreign Currency The Company’s foreign subsidiaries functional currency is the U.S. dollar. Transaction gains and losses are recognized in earnings. The Company is subject to foreign exchange rate fluctuations in connection with the Company’s international operations. Foreign currency balances are translated at each month end to US dollars, and any resulting gain or loss is recognized in our results of operations, as the amounts are not material.
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Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include, among other things, accounts receivable realization, revenue recognition, valuation allowance for deferred tax assets, recoverability of capitalized software development costs, and stock-based compensation and warrant assumptions. We base our estimates on historical experience, our observance of trends in particular areas and information or valuations and various other assumptions that we believe to be reasonable under the circumstances and which form the basis for making judgments about the carrying value of assets and liabilities that may not be readily apparent from other sources. Actual amounts could differ significantly from amounts previously estimated.
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Cash and Cash Equivalents | Cash and Cash Equivalents |
Fair Value | Fair Value The carrying value of cash, accounts receivable, prepaid expenses, and other current assets, accounts payable, and accrued liabilities approximate their fair value based on the liquidity or the short-term maturities of these instruments. The fair value hierarchy promulgated by GAAP consists of three levels: •Level one — Quoted market prices in active markets for identical assets or liabilities; •Level two — Inputs other than level one inputs that are either directly or indirectly observable; and •Level three — Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter.
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Property and Equipment | Property and Equipment |
Leases | Leases The Company accounts for its leases under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 842, Leases ("ASC 842"). Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the consolidated balance sheet as both a right-of-use ("ROU") asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company’s incremental borrowing rate. As the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lease liabilities are increased by interest and reduced by payments each period, and the right-of-use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right-of-use asset result in straight-line rent expense over the lease term. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. The Company evaluates the carrying value of goodwill annually in connection with the annual budgeting and forecast process and also between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit to which goodwill was allocated to below its carrying amount. Such circumstances could include, but are not limited to: (1) a significant adverse change in legal factors, market conditions, or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. When evaluating goodwill for impairment, we may first perform an assessment qualitatively whether it is more likely than not that a reporting unit’s carrying amount exceeds its fair value, referred to as a “step zero” approach. Subsequently (if necessary after step zero), an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying value. Under FASB's Accounting Standards Update ("ASU") 2014-02, Topic 350, "Intangibles—Goodwill and Other" goodwill impairment is measured as the excess of the carrying amount of the reporting unit over its fair value. The impairment evaluation test involves comparing the current fair value of each business unit to its carrying value, including goodwill. Fair value is typically estimated using a discounted cash flow analysis, which requires the Company to estimate the future cash flows anticipated to be generated by the business unit being tested for impairment as well as to select a risk-adjusted discount rate to measure the present value of the anticipated cash flows. When determining future cash flow estimates, the Company considers historical results adjusted to reflect current and anticipated operating conditions. The Company estimates cash flows for the business unit over a discrete period (typically four or five years) and the terminal period (considering expected long term growth rates and trends). Estimating future cash flows requires significant judgment by management in such areas as future economic conditions, industry-specific conditions, product pricing, and necessary capital expenditures. The use of different assumptions or estimates for future cash flows or significant changes in risk-adjusted discount rates due to changes in market conditions could produce substantially different estimates of the fair value of the business unit. The Company has one reportable segment. The Company assesses goodwill impairment by business unit. Judgments regarding the existence of impairment indicators are based on legal factors, market conditions and operational performance of the businesses. Future events, including but not limited to continued declines in economic activity, loss of contracts or a significant number of customers, or a rapid increase in costs or capital expenditures, could cause us to conclude that impairment indicators exist and that goodwill is impaired.
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Deferred Revenue and Revenue Recognition | Deferred Revenue Deferred revenue represents payments received in advance of products to be delivered or services to be performed. When products are delivered and/or services are performed, deferred revenue is recognized as earned. Deferred revenue is expected to be recognized within one year. Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers. The objective of the standard is to establish a single comprehensive revenue recognition model that is designed to create greater comparability of financial statements across industries and jurisdictions. Under this standard, companies recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. All revenue is generated from contracts with customers. The Company recognizes revenue when control of these services is transferred to the customer in an amount, referred to as the transaction price, that reflects the consideration to which the Company is expected to be entitled in exchange for those services. The Company determines revenue recognition utilizing the following five steps: (1) identification of the contract with a customer, (2) identification of the performance obligations in the contract (promised goods or services that are distinct), (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations, and (5) recognition of revenue when, or as, the Company transfers control of the product or service for each performance obligation. The Company records revenues net of any tax assessments by governmental authorities, such as value added taxes, that are imposed on and concurrent with specific revenue generating transactions. The majority of the Company's revenue arrangements are service contracts that are completed within a year or less. There are a few contracts that range in duration between 1 and 3 years. Substantially all of the Company's performance obligations, and associated revenue, are transferred to the customer over time. Most of the Company's contracts can be terminated by the customer without cause. In the event of termination, the Company's contracts provide that the customer pay the Company for services rendered through the termination date. The Company generally receives compensation based on a predetermined invoicing schedule relating to specific milestones for that contract. Amendments to contracts are common. The Company evaluates each amendment which meets the criteria of a contract modification under ASC 606. Each modification is further evaluated to determine whether the contract modification should be accounted for as a separate contract or as a continuation of the original agreement. The Company accounts for amendments as a separate contract as they meet the criteria under ASC 606-10-25-12. Pharmacology Study and Other Services The Company generally enters into contracts with customers to provide oncology services with payments based on fixed-fee arrangements. At contract inception, the Company assesses the services promised in the contracts with customers to identify the performance obligations in the arrangement. The Company's fixed-fee arrangements for oncology services are considered a single performance obligation because the Company provides a highly-integrated service. The Company recognizes revenue over time using a progress-based input method since there is no single output measure that would fairly depict the transfer of control over the life of the performance obligation. Revenue is recognized for the single performance obligation over time due to the Company's right to payment for work performed to date and the performance does not create an asset with an alternative use. The Company recognizes revenue as portions of the overall performance obligation are completed as this best depicts the progress of the performance obligation. Incremental Costs of Obtaining a Contract (Sales Commissions) Under ASC 606, the costs of obtaining a contract can be expensed immediately, rather than capitalized and amortized, if the amortization period is one year or shorter. Sales commissions for the Company represent contract costs with a term of one year or less. Therefore, under ASC 606, the Company elected the practical expedient to expense these costs as incurred. Variable Consideration In some cases, contracts provide for variable consideration that is contingent upon the occurrence of uncertain future events, such as the success of the initial performance obligation. Variable consideration is estimated at the expected value or at the most likely amount depending on the type of consideration. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The estimate of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of its anticipated performance and all information (historical, current and forecasted) that is reasonably available to the Company. Trade Receivables, Unbilled Services and Deferred Revenue In general, billings and payments are established by contractual provisions including predetermined payment schedules, which may or may not correspond to the timing of the transfer of control of the Company's services under the contract. In general, the Company's intention in its invoicing (payment terms) is to maintain cash neutrality over the life of the contract. Upfront payments, when they occur, are intended to cover certain expenses the Company incurs at the beginning of the contract. Neither the Company nor its customers view such upfront payments and contracted payment schedules as a means of financing. Unbilled services primarily arise when the revenue recognized exceeds the amount billed to the customer. Such situations occur due to divergences between revenue recognition and the invoicing milestones which are based on predetermined payment terms. Deferred revenue consists of unearned payments received in excess of revenue recognized. As the contracted services are subsequently performed and the associated revenue recognized, the deferred revenue balance is reduced by the amount of the revenue recognized during the period. Deferred revenue is classified as a current liability on the consolidated balance sheet as the Company expects to recognize the associated revenue in less than one year.
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Other Non-Current Liabilities | Other Non-Current Liabilities Other non-current liabilities represent amounts for uncertain tax positions relating to one of our foreign entities and a financing lease of laboratory equipment in exchange for a lab supplies purchasing commitment.
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Cost of Oncology Services | Cost of Oncology Services Cost of oncology services relates primarily to our Translational Oncology Solutions ("TOS") business unit. TOS costs consist of direct costs related to laboratory supplies, mice purchases, and maintenance costs for studies completed internally as well as charges from Contract Research Organization's for studies handled externally. Indirect costs include salaries and other payroll related costs of compensation for personnel directly engaged in providing TOS products and services. All costs of performing studies in-house are expensed as incurred. All costs of performing studies from external sources, are expensed when incurred.
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Research and Development | Research and Development |
Sales and Marketing | Sales and Marketing Sales and marketing expenses represent costs incurred to promote the Company’s products offered, including salaries, benefits and related costs of our sales and marketing personnel, and represent costs of advertising and other selling and marketing expenses. All sales and marketing costs, including advertising costs, are expensed as incurred.
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Earnings Per Share | Earnings Per Share |
Stock-based Payments | Stock-based Payments The Company typically recognizes expense for stock-based payments based on the fair value of awards on the date of grant. The Company uses the Black-Scholes option pricing model to estimate fair value. The Black-Scholes option valuation model was developed for use in estimating the fair value of short-traded options that have no vesting restrictions and are fully transferable. The option pricing model requires the Company to estimate certain key assumptions such as expected life, volatility, risk free interest rates and dividend yield to determine the fair value of stock-based awards. These assumptions are based on historical information and management judgment. The risk-free interest rate used is based on the United States treasury security rate with a term consistent with the expected term of the award at the time of the grant. Since the Company has limited option exercise history, it has generally elected to estimate the expected life of an award based upon the Securities and Exchange Commission-approved “simplified method” noted under the provisions of Staff Accounting Bulletin No. 107 with the continued use of this method extended under the provisions of Staff Accounting Bulletin No. 110. Estimated volatility is based upon the historical volatility of the Company's common stock. The Company does not anticipate paying a dividend, and therefore, no expected dividend yield was used. The Company expenses stock-based payments over the period that the awards are expected to vest. In the event of forfeitures, compensation expense is adjusted. The Company expenses modification charges in the period of modification and, if required, over the remaining period the awards are expected to vest. The Company will report cash flows resulting from tax deductions in excess of the compensation cost recognized from those options (excess tax benefits) as financing cash flows, if they should arise.
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Income Taxes | Income Taxes Deferred income taxes have been provided to show the effect of temporary differences between the recognition of expenses for financial and income tax reporting purposes and between the tax basis of assets and liabilities, and their reported amounts in the consolidated financial statements. In assessing the realizability of deferred tax assets, the Company assesses the likelihood that deferred tax assets will be recovered through tax planning strategies or from future taxable income, and to the extent that recovery is not likely or there is insufficient operating history, a valuation allowance is established. The Company adjusts the valuation allowance in the period management determines it is more likely than not that net deferred tax assets will or will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. As of April 30, 2022 and 2021, the Company provided a valuation allowance for all net deferred tax assets, as recovery is not more likely than not based on an insufficient history of earnings. The Company reflects tax benefits only if it is more likely than not that we will be able to sustain the tax position, based on its technical merits. If a tax benefit meets this criterion, it is measured and recognized based on the largest amount of benefit that is cumulatively greater than 50% likely to be realized. As of April 30, 2022 and 2021 the Company has recorded $181,000 of liabilities related to uncertain tax positions relative to one of its foreign operations. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense.
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Accounting Pronouncements Being Evaluated and Recently Adopted Accounting Pronouncements | Accounting Pronouncements Being Evaluated In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses". This update requires immediate recognition of management’s estimates of current expected credit losses ("CECL"). Under the prior model, losses were recognized only as they were incurred. The new model is applicable to all financial instruments that are not accounted for at fair value through net income. The standard is effective for fiscal years beginning after December 15, 2022 for public entities qualifying as smaller reporting companies. Early adoption is permitted. We are currently assessing the impact of this update on our consolidated financial statements and have not yet determined the impact on our consolidated financial statements. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (ASC 740) — Simplifying the Accounting for Income Taxes. ASU 2019-12 which modifies ASC 740 to simplify the accounting for income taxes. The ASU removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2020. We adopted this guidance on May 1, 2021. The adoption of this ASU did not have a material impact is reflected in the Company's current year consolidated financial statements.
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Accounts Receivable, Unbilled Services and Deferred Revenue (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of accounts receivable, unbilled services, and advanced billings | Accounts receivable and unbilled services were as follows (in thousands):
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Summary of advanced billings | Deferred revenue was as follows (in thousands):
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Property and Equipment (Tables) |
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Property and Equipment | Property and equipment consisted of the following (in thousands):
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Revenue from Contracts with Customers (Tables) |
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Disaggregation of Revenue | The following table represents disaggregated revenue for the twelve months ended April 30, 2022 and 2021:
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Stock-based Payments (Tables) |
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Apr. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Employee Service Stock-based Compensation, Allocation of Recognized Period Costs | Stock-based compensation costs were recorded as follows (in thousands):
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock-based Payment Award, Stock Options, Valuation Assumptions | Black-Scholes assumptions used to calculate the fair value of options granted during the years ended April 30, 2022 and 2021 were as follows:
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Schedule of Stock-based Compensation, Stock Options, Activity | The Company’s stock options activity and related information as of and for the years ended April 30, 2022 and 2021 is as follows:
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Provision for Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense | The components of the provision for income taxes are as follows (in thousands):
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Schedule of Effective Income Tax Rate Reconciliation | A reconciliation between the Company’s effective tax rate and the United States statutory tax rate for the years ended April 30, 2022 and 2021 is as follows:
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Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities as of April 30, 2022 and 2021 consist of the following (in thousands):
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Schedule of Unrecognized Tax Benefits Roll Forward | The following table indicates the changes to the Company’s uncertain tax positions for the period and years ended April 30, 2022 and 2021 in thousands:
|
Earnings Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of net income and number of shares used in computing basic and diluted earnings per share was as follows:
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table reflects the total potential stock-based instruments outstanding at April 30, 2022 and 2021 that could have an effect on the future computation of dilution per common share. These figures were not included in the above calculation as, to do so, would be antidilutive:
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Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities | ROU assets and lease liabilities related to our current operating leases are as follows (in thousands):
|
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Future Operating Lease Payments | Future minimum lease payments due each fiscal year as follows (in thousands):
|
Organization and Basis of Presentation - Narrative (Details) |
12 Months Ended |
---|---|
Apr. 30, 2022
segment
subsidiary
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating subsidiaries | subsidiary | 3 |
Number of reportable segments | segment | 1 |
Summary of Significant Accounting Policies - Narrative (Details) |
12 Months Ended | ||
---|---|---|---|
Apr. 30, 2022
USD ($)
segment
|
Apr. 30, 2021
USD ($)
|
Apr. 30, 2020
USD ($)
|
|
Property, Plant and Equipment [Line Items] | |||
Cash | $ 9,007,000 | $ 4,687,000 | |
Cash equivalents | 0 | 0 | |
Net income | 548,000 | 362,000 | |
Accumulated deficit | 71,982,000 | 72,530,000 | |
Working capital | 2,200,000 | ||
Impairment of long-lived assets | $ 0 | 0 | |
Number of reportable segments | segment | 1 | ||
Unrecognized tax benefits | $ 181,000 | 181,000 | $ 178,000 |
Income tax penalties and interest expense | 0 | 3,000,000 | |
Provision for (benefit) from income tax | $ 35,000 | $ 75,000 | |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 7 years |
Summary of Significant Accounting Policies - Revenue Recognition (Details) - Few Contracts - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-05-01 |
Apr. 30, 2022 |
---|---|
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue arrangements by service contract period | 1 year |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue arrangements by service contract period | 3 years |
Accounts Receivable, Unbilled Services and Deferred Revenue - Summary of Accounts Receivable and Unbilled Services (Details) - USD ($) $ in Thousands |
Apr. 30, 2022 |
Apr. 30, 2021 |
Apr. 30, 2020 |
---|---|---|---|
Receivables [Abstract] | |||
Accounts receivable | $ 6,037 | $ 4,304 | |
Unbilled services | 4,106 | 3,020 | $ 2,400 |
Total accounts receivable and unbilled services | 10,143 | 7,324 | |
Less: allowance for doubtful accounts | (630) | (338) | |
Total accounts receivable, net | $ 9,513 | $ 6,986 |
Accounts Receivable, Unbilled Services and Deferred Revenue - Summary of Deferred Revenue (Details) - USD ($) $ in Thousands |
Apr. 30, 2022 |
Apr. 30, 2021 |
Apr. 30, 2020 |
---|---|---|---|
Receivables [Abstract] | |||
Deferred revenue | $ 11,071 | $ 6,256 | $ 5,800 |
Accounts Receivable, Unbilled Services and Deferred Revenue - Narrative (Details) - USD ($) $ in Thousands |
Apr. 30, 2022 |
Apr. 30, 2021 |
Apr. 30, 2020 |
---|---|---|---|
Receivables [Abstract] | |||
Unbilled services | $ 4,106 | $ 3,020 | $ 2,400 |
Deferred revenue | $ 11,071 | $ 6,256 | $ 5,800 |
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Apr. 30, 2022 |
Apr. 30, 2021 |
|
Disaggregation of Revenue [Line Items] | ||
Total oncology services revenue | $ 49,109 | $ 41,040 |
Pharmacology services | ||
Disaggregation of Revenue [Line Items] | ||
Total oncology services revenue | 46,833 | 39,473 |
Other TOS revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total oncology services revenue | 2,227 | 1,401 |
Personalized oncology services | ||
Disaggregation of Revenue [Line Items] | ||
Total oncology services revenue | $ 49 | $ 166 |
Significant Customers (Details) |
12 Months Ended |
---|---|
Apr. 30, 2022 | |
Accounts Receivable | Customer Concentration Risk | One Customer | |
Revenue, Major Customer [Line Items] | |
Concentration risk percentage | 17.00% |
Commitments and Contingencies - Narrative (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Apr. 30, 2022 |
Apr. 30, 2021 |
|
Commitments and Contingencies [Line Items] | ||
Royalty expense | $ 401,000 | $ 127,000 |
Minimum | ||
Commitments and Contingencies [Line Items] | ||
Royalty fee per tumor sample | $ 0 | |
Royalty payment, as percent of contract price | 2.00% | |
Maximum | ||
Commitments and Contingencies [Line Items] | ||
Royalty fee per tumor sample | $ 30,000 | |
Royalty payment, as percent of contract price | 20.00% |
Stock-based Payments - Allocation of Stock-based Compensation Costs (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Apr. 30, 2022 |
Apr. 30, 2021 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 912 | $ 598 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 563 | 292 |
Sales and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 189 | 199 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 18 | 23 |
TOS cost of sales | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 142 | $ 84 |
Stock-based Payments - Stock Option Grants Assumptions (Details) |
12 Months Ended | |
---|---|---|
Apr. 30, 2022 |
Apr. 30, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rates Minimum | 0.80% | 0.10% |
Risk-free interest rates Maximum | 1.20% | 0.50% |
Volatility Minimum | 64.00% | 70.00% |
Volatility Maximum | 66.00% | 75.00% |
Dividend yield | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term in years | 3 years | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term in years | 6 years | 6 years |
Provision for Income Taxes - Components of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Apr. 30, 2022 |
Apr. 30, 2021 |
|
Federal | ||
Current | $ 0 | $ 0 |
Total | 0 | 0 |
State | ||
Current | 10 | 13 |
Total | 10 | 13 |
Foreign | ||
Current | 25 | 62 |
Total | 25 | 62 |
Current, total | 35 | 75 |
Provision for income tax | $ 35 | $ 75 |
Provision for Income Taxes - Reconciliation of Effective Tax Rate (Details) |
12 Months Ended | |
---|---|---|
Apr. 30, 2022 |
Apr. 30, 2021 |
|
Income Tax Disclosure [Abstract] | ||
Federal income tax at statutory rate | 21.00% | 21.00% |
US vs. foreign tax rate difference | 1.30% | 0.50% |
State income tax, net of federal benefit | 3.30% | 80.80% |
Permanent differences | (47.30%) | (61.50%) |
Increase in uncertain tax position | 0.00% | 0.70% |
Change in valuation allowance | 27.70% | (24.30%) |
Income tax expense | 6.00% | 17.20% |
Provision for Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Apr. 30, 2022 |
Apr. 30, 2021 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Accrued liabilities | $ 162 | $ 232 |
Right of use, net asset/liability | 316 | 271 |
Depreciation and amortization | (396) | (206) |
Stock-based compensation expense | 3,874 | 3,640 |
Net operating loss carry-forward | 11,546 | 11,404 |
Total deferred tax assets | 15,502 | 15,341 |
Less: Valuation allowance | (15,502) | (15,341) |
Net deferred tax asset | $ 0 | $ 0 |
Provision for Income Taxes - Narrative (Details) - USD ($) $ in Thousands |
Apr. 30, 2022 |
Apr. 30, 2021 |
Apr. 30, 2020 |
Apr. 30, 2013 |
---|---|---|---|---|
Income Tax Disclosure [Abstract] | ||||
Valuation allowance | $ 15,500 | $ 15,300 | ||
Operating loss carryforwards | 48,000 | 46,900 | ||
Operating loss, limitations on use | 432 | $ 12,000 | ||
Unrecognized tax benefits | $ 181 | $ 181 | $ 178 |
Provision for Income Taxes - Change in Uncertain Tax Positions (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Apr. 30, 2022 |
Apr. 30, 2021 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, beginning of the year | $ 181 | $ 178 |
Addition based on tax positions related to prior years | 0 | 0 |
Payment made on tax positions related to prior years | 0 | 0 |
Addition based on tax positions related to current year | 0 | 3 |
Balance, end of year | $ 181 | $ 181 |
Earnings Per Share - Calculations of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Apr. 30, 2022 |
Apr. 30, 2021 |
|
Basic and diluted net income per share computation (dollars in thousands): | ||
Net income attributable to common stockholders | $ 548 | $ 362 |
Basic net income per share (in usd per share) | $ 0.04 | $ 0.03 |
Diluted income per share computation | ||
Net income attributable to common stockholders | $ 548 | $ 362 |
Weighted Average common shares (in shares) | 13,197,170 | 13,138,995 |
Incremental shares from assumed exercise of warrants and stock options (in shares) | 962,629 | 1,434,566 |
Adjusted weighted average share - diluted (in shares) | 14,159,799 | 14,573,561 |
Diluted net income per share (in usd per share) | $ 0.04 | $ 0.02 |
Earnings Per Share - Summary of Potentially Dilutive Stock-based Instruments (Details) - shares |
12 Months Ended | |
---|---|---|
Apr. 30, 2022 |
Apr. 30, 2021 |
|
Class of Stock [Line Items] | ||
Total common stock equivalents | 1,332,854 | 1,653,646 |
Stock options | ||
Class of Stock [Line Items] | ||
Total common stock equivalents | 1,332,854 | 1,653,646 |
Related Party Transactions - Narrative (Details) - Board of Directors - USD ($) |
12 Months Ended | |
---|---|---|
Apr. 30, 2022 |
Apr. 30, 2021 |
|
Board Member One | ||
Related Party Transaction [Line Items] | ||
Related related party transaction, amounts of transaction | $ 36,000 | $ 54,000 |
Board Member Two | ||
Related Party Transaction [Line Items] | ||
Related related party transaction, amounts of transaction | $ 17,000 | $ 5,500 |
Leases - ROU Assets and Lease Liabilities (Details) - USD ($) $ in Thousands |
Apr. 30, 2022 |
Apr. 30, 2021 |
May 01, 2020 |
---|---|---|---|
Leases [Abstract] | |||
Operating lease right-of-use assets, net | $ 8,230 | $ 8,521 | $ 8,521 |
Current portion of operating lease liabilities | 1,054 | 818 | 818 |
Non-current portion of operating lease liabilities | $ 8,412 | $ 8,783 | $ 8,783 |
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands |
Apr. 30, 2022 |
Apr. 01, 2021 |
---|---|---|
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2023 | $ 2,735 | |
2024 | 2,809 | |
2025 | 2,848 | |
2026 | 2,895 | |
2027 | 2,860 | |
Thereafter | 5,164 | |
Total undiscounted liabilities | 19,311 | |
Less: Imputed interest | (9,845) | |
Operating lease, liability | $ 9,466 | $ 3,300 |
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