Property and Equipment

12 Months Ended

Apr. 30, 2022

Property, Plant and Equipment [Abstract]

Property and equipment consisted of the following (in thousands):


	April 30,
	2022		2021
Furniture and fixtures	$	246	$	246
Computer equipment and software	1,667		1,461
Laboratory equipment	8,618		6,640
Capitalized software development costs	1,888		484
Assets in progress	181		1,211
Leasehold improvements	111		4

Total property and equipment	12,711		10,046
Less: Accumulated depreciation and amortization	(5,577)		(3,956)

Property and equipment, net	$	7,134	$	6,090

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.