Property and Equipment

12 Months Ended

Apr. 30, 2024

Property, Plant and Equipment [Abstract]

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


	April 30,
	2024		2023
Furniture and fixtures	$	246	$	246
Computer equipment and software	2,152		2,102
Laboratory equipment	11,506		10,390
Capitalized software development costs	1,888		1,888
Assets in progress	3		1,079
Leasehold improvements	317		111

Total property and equipment	16,112		15,816
Less: Accumulated depreciation and amortization	(10,391)		(8,630)

Property and equipment, net	$	5,721	$	7,186

Depreciation and amortization expense was $1.9 million and $2.2 million for the years ended April 30, 2024 and 2023, respectively. Depreciation and amortization expense, excluding expense recorded under finance leases, was $1.7 million and $2.1 million for the years ended April 30, 2024 and 2023, respectively.

As of April 30, 2024 and 2023, property, plant and equipment included gross assets held under finance leases of $1.0 million, respectively. Related depreciation expense for these assets was $146,000 and $135,000 for the years ended April 30, 2024 and 2023, respectively.

During the year ended April 30, 2024, the Company disposed of lab equipment with a cost of $542,000 and accumulated depreciation of $107,000 as of the disposal date, resulting in a loss on disposal of equipment recorded of $435,000. There were no disposals and therefore no gain or loss recorded during the year ended April 30, 2023.

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 capitalized development and implementation costs in accordance with accounting guidance for its bioinformatics platform, Lumin. Lumin is the Company's oncology data-driven software program and data tool which 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. Total capitalized gross asset costs for the Lumin platform that was launched and placed into service were $1.9 million. During the fourth quarter of fiscal year 2023, an impairment loss for Lumin was recognized equal to the amount by which the carrying amount exceeded the future net revenues, or, its net book value at April 30, 2023 of $807,000. Amortization expense related to this asset was $0 and $630,000 for the years ended April 30, 2024 and 2023, respectively.

Finance Lease

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 $75,000 and $72,000 for the years ended April 30, 2024 and 2023, respectively. Interest on the related finance lease liability was approximately $6,000 and $8,000 for the years ended April 30, 2024 and 2023, respectively.

During fiscal 2023, 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 $368,000 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 $368,000 was calculated based on an interest rate of 3.5%. Depreciation and amortization expense related to this finance lease was $71,000 and $63,000 for the years ended April 30, 2024 and 2023, respectively. Interest on the related finance lease liability was approximately $9,000 and $11,000 for the years ended April 30, 2024 and 2023, respectively.

Future minimum lease payments due each fiscal year as follows (in thousands):


2025	$	160
2026	140
2027	80
2028	7
Thereafter	—
Total undiscounted liabilities	387
Less: Imputed interest	(16)
Present value of minimum lease payments	$	371