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10-Q
2020-01-31
false
--04-30
Q3
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>(1) Background, Basis of Presentation and Liquidity</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 24px"><b><i>a)</i></b></td>
<td style="font: 10pt Times New Roman, Times, Serif"><b><i>Background</i></b></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Ocean Power Technologies, Inc. (the “Company”)
was founded in 1984 in New Jersey, commenced business operations in 1994 and re-incorporated in Delaware in 2007. The Company is
developing and commercializing its proprietary systems that generate electricity by harnessing the renewable energy of ocean waves.
The Company uses proprietary technologies that convert the mechanical energy created by the heaving motion of ocean waves into
electricity. The Company has designed and continues to develop the PowerBuoy® product line which is based on modular, ocean-going
buoys, which the Company has been periodically ocean testing since 1997. The Company markets its PowerBuoys® in the United
States and internationally. Since fiscal 2002, government agencies have accounted for a significant portion of the Company’s
revenues. These revenues were largely for the support of product development efforts relating to our technology. Today our goal
is to generate the majority of our revenue from the sale or lease of products, and sales of services to support our business operations.
As we continue to develop and commercialize our products and services, we expect to have a net decrease in cash due to the use
of cash from operating activities unless and until we achieve positive cash flow from the commercialization of products and services.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 24px"><b><i>b)</i></b></td>
<td style="font: 10pt Times New Roman, Times, Serif"><b><i>Basis of Presentation</i></b></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited consolidated financial
statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial
information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information
and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management,
all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The
interim operating results are not necessarily indicative of the results for a full year or for any other interim period. Further
information on potential factors that could affect the Company’s financial results can be found in the Company’s Annual
Report on Form 10-K for the year ended April 30, 2019 and its Quarterly Reports on Form 10-Q for the quarters ended July 31, 2019
and October 31, 2019, each filed with the Securities and Exchange Commission (“SEC”), and elsewhere in this Form 10-Q.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 10pt Times New Roman, Times, Serif; width: 24px"><b><i>c)</i></b></td>
<td style="font: 10pt Times New Roman, Times, Serif"><b><i>Liquidity/Going Concern</i></b></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our consolidated financial statements have
been prepared assuming the Company will continue as a going concern. The Company has experienced substantial and recurring losses
from operations, which have contributed to an accumulated deficit of $218.9 million as of January 31, 2020. As of January 31, 2020,
the Company had approximately $10.8 million in cash, cash equivalents, and restricted cash on hand. The Company generated revenues
of $1.1 million and $0.4 million during the nine months ended January 31, 2020 and 2019, respectively. Based on the Company’s
cash, cash equivalents and restricted cash balances as of January 31, 2020, the Company believes that it will be able to finance
its capital requirements and operations into the quarter ending October 31, 2020. Among other things, the Company is currently
evaluating a variety of different financing alternatives and we expect to continue to fund our business with sales of our securities
and through generating revenue with customers. The Company will require additional equity and/or debt financing to continue its
operations into Fiscal Year 2021. The Company cannot provide assurances that it will be able to secure additional funding when
needed or at all, or, if secured, that such funding would be on favorable terms. These factors raise substantial doubt about the
Company’s ability to continue as a going concern.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The consolidated financial statements have
been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal
course of business. The consolidated financial statements do not include any adjustments relating to the recoverability and classification
of recorded assets amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management is evaluating different strategies
to obtain the required additional funding for future operations. These strategies may include, but are not limited to, continued
pursuit of business opportunities, additional funding from current and /or new investors, officers and directors; borrowings of
debt; a public offering of the Company’s equity or debt securities; partnerships and/or collaborations. There can be no assurance
that any of these future-funding efforts will be successful.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In fiscal 2019 and during the nine months ended
January 31, 2020, the Company has continued to make investments in ongoing product development efforts in anticipation of future
growth. The Company’s future results of operations involve significant risks and uncertainties. Factors that could affect
the Company’s future operating results and cause actual results to vary materially from expectations include, but are not
limited to, risks from lack of available financing and insufficient capital, performance of PowerBuoys®, its inability to
market and commercialize its PowerBuoys® and new products that it may develop, technology development, scalability of technology
and production, dependence on skills of key personnel, concentration of customers and suppliers, deployment risks and laws, regulations
and permitting. In order to continue to implement its business strategy, the Company requires additional equity and/or debt financing.
The Company currently has committed sources of equity financing through its At the Market Offering Agreement with A.G.P/Alliance
Global Partners (“AGP”) and the Aspire Capital financing (each discussed further below), but the Company cannot be
sure that additional equity and/or debt financing will be available to the Company as needed on acceptable terms, or at all. Historically,
the Company has raised capital through securities sales in the public capital markets. If sufficient additional financing is not
obtained when needed, the Company may be required to further curtail or limit operations, product development costs, and/or selling,
general and administrative activities in order to reduce its cash expenditures. This could cause the Company to be unable to execute
its business plan, take advantage of future opportunities and may cause it to scale back, delay or eliminate some or all of its
product development activities and/or reduce the scope of or cease its operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 13, 2018, the Company entered into
a common stock purchase agreement with Aspire Capital Fund, LLC (“Aspire Capital”) which provided that, subject to
certain terms, conditions and limitations, Aspire Capital was committed to purchase up to an aggregate of $10.0 million of shares
of the Company’s common stock over a 30-month period that does not exceed 19.99% of the outstanding common stock on the date
of the agreement. The number of shares the Company could issue within the 19.99% limit is 183,591 shares. Shareholder approval
was not needed since the number of common stock offered for sale in the common stock purchase agreement did not exceed 19.99% of
the outstanding common stock on the date of the agreement. In consideration for entering into the agreement, the Company issued
to Aspire Capital 21,429 shares of our common stock as a commitment fee. The agreement was cancelled on October 24, 2019, and as
of that date, the Company had sold 162,162 shares of common stock with an aggregate market value of $949,259 at an average price
of $5.85 per share pursuant to this common stock purchase agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 24, 2019, the Company entered into
a new common stock purchase agreement with Aspire Capital which provides that, subject to certain terms, conditions and limitations,
Aspire Capital is committed to purchase up to an aggregate of $10.0 million of shares of the Company’s common stock over
a 30-month period that does not exceed 19.99% of the outstanding common stock on the date of the agreement. The number of shares
the Company can issue within the 19.99% limit is 1,219,010 shares including shares issued as a commitment fee. Shareholder approval
is needed for sale of common stock over the 19.99% limit of the outstanding common stock on the date of the agreement. At the 2019
annual meeting of stockholders, held on December 20, 2019, the Company’s stockholders approved an additional 5,400,000 shares
to be issued pursuant to the common stock purchase agreement. In consideration for entering into the agreement, the Company issued
to Aspire Capital 194,805 shares of our common stock as a commitment fee. As of January 31, 2020, the Company has sold 1,024,205
shares of common stock with an aggregate market value of $901,206 at an average price of $0.88 per share pursuant to this common
stock purchase agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 8, 2019, the Company sold 1,542,000
shares of common stock, which includes the sale of 642,000 shares of the Company’s common stock sold by the Company pursuant
to the exercise, in full, of the over-allotment option by the underwriters in a public offering. As part of the public offering,
the Company also sold prefunded warrants to purchase up to 3,385,680 shares of common stock and common warrants to purchase up
to 4,927,680 shares of our common stock. The net proceeds to the Company from the offering were approximately $15.7 million, after
deducting underwriter fees and offering expenses payable by the Company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 7, 2019, the Company entered into
an At the Market Offering Agreement (“2019 ATM Facility”) with AGP, under which the Company may issue and sell to or
through AGP, acting as agent and/or principal, shares of the Company’s common stock having an aggregate offering price of
up to $25 million. Through January 31, 2020, under the 2019 ATM Facility, the Company sold and issued 1,527,145 shares of its common
stock with an aggregate market value of $2.9 million at an average price of $1.91 per share and paid AGP a sales commission of
approximately $94,724 related to those shares.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The sale of additional equity or convertible
securities could result in dilution to stockholders. If additional funds are raised through the issuance of debt securities, these
securities could have rights senior to those associated with the Company’s common stock and could contain covenants that
would restrict its operations. Financing may not be available in amounts or on terms acceptable to the Company, or at all. If the
Company is unable to obtain required financing, it may be required to reduce the scope of its operations, including its planned
product development and marketing efforts, which could materially and adversely harm its financial condition and operating results.
If the Company is unable to secure additional financing, it may be forced to cease operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><font style="background-color: white">If
our common stock is delisted from Nasdaq, our ability to raise capital through public offerings of our securities and to finance
our operations could be adversely affected. See additional risk factors under “Part II, Item 1A – Risk Factors”.
We also believe that delisting would likely result in decreased liquidity and/or increased volatility in our common stock and could
harm our business and future prospects. In addition, we believe that, if our common stock is delisted, our stockholders would likely
find it more difficult to obtain accurate quotations as to the price of the common stock and it may be more difficult for stockholders
to buy or sell our common stock at competitive market prices, or at all.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(d) Reverse Stock-Split</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company initiated a 1-for-20 reverse stock
split effective as of the close of markets on March 11, 2019. The common stock began trading on a reverse stock split-adjusted
basis on the Nasdaq on March 12, 2019. All shares and per share data in these consolidated financial statements and notes thereto
have been retroactively adjusted to give effect to the reverse stock split.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>(2) Summary of Significant Accounting Policies</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>(a) Consolidation</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying consolidated financial statements
include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany balances and transactions
have been eliminated in consolidation.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>(b) Use of Estimates</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The preparation of
the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating
to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated
financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates
and assumptions include the fair value of warrant liabilities, estimated costs to complete projects; and percentage of completion
of customer contracts for purposes of revenue recognition. Actual results could differ from those estimates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>(c) Cash, Cash Equivalents, Restricted Cash and Security Agreements</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Cash and Cash Equivalents</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents. The Company invests excess cash in a money market
account.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>April 30, 2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="6" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Checking and savings accounts</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 20%; text-align: right">948</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 19%; text-align: right">860</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Money market account</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">8,929</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">15,800</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">9,877</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">16,660</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Restricted Cash and Security Agreements</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A portion of the Company’s cash is restricted
under the terms of various security agreements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">One agreement is between the Company and Barclays
Bank. Under this agreement, the cash is on deposit at Barclays Bank and serves as security for letters of credit and bank guarantees
that are expected to be issued by Barclays Bank on behalf of OPT LTD, one of the Company’s subsidiaries, under a credit facility
established by Barclays Bank for OPT LTD. The credit facility is approximately €0.3 million ($0.4 million) and carries a
fee of 1% per annum of the amount of any such obligations issued by Barclays Bank. The credit facility does not have an expiration
date but is cancelable at the discretion of the bank. As of January 31, 2020, there were no letters of credit outstanding under
this agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The other agreements are between the Company
and Santander Bank. Cash is on deposit at Santander Bank and serves as security for a letter of credit issued by Santander Bank
for the lease of warehouse/office space in Monroe Township, New Jersey. This agreement cannot be extended beyond January 31, 2025
and is cancelable at the discretion of the bank. Santander Bank also issued two letters of credit to subsidiaries of Enel Green
Power (“EGP”) pursuant to the Company’s contracts with EGP. The first letter of credit was issued in the amount
of $125,690 that expires in October 2020. The second letter of credit was issued in the amount of $645,467. This second letter
of credit will be reduced to $322,734 in March 2020 and to $64,547 in May 2020. The remaining amount expires in April 2021. Restricted
cash includes the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>April 30, 2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="6" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Barclay’s Bank Agreement</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 20%; text-align: right">-</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 19%; text-align: right">344</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Santander Bank</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">928</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">155</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">928</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">499</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table provides a reconciliation
of cash, cash equivalents and restricted cash reported within the Statement of Financial Position that sum to the total of the
same such amounts shown in the Statement of Cash Flows.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>April 30, 2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="6" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Cash and cash equivalents</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 20%; text-align: right">9,877</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 19%; text-align: right">16,660</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Restricted cash- short term</td>
<td> </td>
<td> </td>
<td style="text-align: right">707</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">344</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt">Restricted cash- long term</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">221</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">155</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">10,805</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">17,159</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>(d) Foreign Exchange Gains and Losses</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company maintains cash accounts that are
denominated in British pounds sterling, Euros and Australian dollars. These amounts are included in cash, cash equivalents and
restricted cash on the accompanying Consolidated Balance Sheets. Such positions may result in realized and unrealized foreign exchange
gains or losses from exchange rate fluctuations, which are included in “Foreign exchange gain/(loss)” in the accompanying
Consolidated Statements of Operations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>(e) Property and Equipment</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment is stated at cost, less
accumulated depreciation and amortization. Depreciation and amortization is calculated using the straight-line method over the
estimated useful lives (three to seven years) of the assets. Leasehold improvements are amortized using the straight-line method
over the shorter of the estimated useful life of the asset or the remaining lease term. Expenses for maintenance and repairs are
charged to operations as incurred. Property and equipment is also reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured
by a comparison of the carrying amount of the asset to estimated undiscounted future cash flows expected to be generated by the
asset. If the carrying amount of the asset exceeds its estimated future cash flows, then an impairment charge is recognized in
the amount by which the carrying amount of the asset exceeds the fair value of the asset.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>(f) Concentration of Credit Risk</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Financial instruments that potentially subject
the Company to credit risk consist principally of trade accounts receivable and cash. The Company believes that its credit risk
is limited because the Company’s current contracts are with companies with strong financial strength. The Company invests
its excess cash in a money market fund and does not believe that it is exposed to any significant risks related to its cash accounts
and money market fund. Cash is also maintained at foreign financial institutions. Cash in foreign financial institutions as of
January 31, 2020 was $0.3 million.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The table below shows the percentage of the
Company’s revenues derived from customers whose revenues accounted for at least 10% of the Company’s consolidated revenues
for at least one of the periods indicated:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><b>Three months ended<br />
January 31,</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><b>Nine months ended<br />
January 31,</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid"><b>Customer</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2019</b></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 44%">Eni S.p.A.</td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right">6</td>
<td style="width: 1%">%</td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right">53</td>
<td style="width: 1%">%</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 10%; text-align: right">10</td>
<td style="width: 1%">%</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 10%; text-align: right">60</td>
<td style="width: 1%">%</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Premier Oil UK Limited</td>
<td> </td>
<td> </td>
<td style="text-align: right">1</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">47</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">11</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">35</td>
<td>%</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>EGP</td>
<td> </td>
<td> </td>
<td style="text-align: right">93</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">0</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">68</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">5</td>
<td>%</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Other</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">0</td>
<td style="padding-bottom: 1.5pt">%</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">0</td>
<td style="padding-bottom: 1.5pt">%</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">11</td>
<td style="padding-bottom: 1.5pt">%</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">0</td>
<td style="padding-bottom: 1.5pt">%</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right">100</td>
<td style="padding-bottom: 2.5pt">%</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right">100</td>
<td style="padding-bottom: 2.5pt">%</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right">100</td>
<td style="padding-bottom: 2.5pt">%</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right">100</td>
<td style="padding-bottom: 2.5pt">%</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The loss of, or a significant reduction in
revenues from a current customer could significantly impact the Company’s financial position or results of operations. The
Company does not require its customers to maintain collateral.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>(g) Warrant Accounting</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for warrants issued in
connection with its public offerings in accordance with the guidance on “Accounting for Certain Financial Instruments with
Characteristics of Both Liabilities and Equity” in Accounting Standards Codification (“ASC”) Topic 480 which
provides that warrants meeting the classification of a liability award are recorded as a liability at its fair value. The warrant
liabilities are subject to re-measurement at each balance sheet date using the Black-Scholes option pricing model. The Company
recognizes any change in fair value in its Consolidated Statements of Operations within “Gain due to the change in fair value
of warrant liabilities.” The Company will continue to adjust the carrying value of the warrants for changes in the estimated
fair value until such time as these instruments are exercised or expire. At that time, the liabilities will be reclassified to
“Additional paid-in capital”, a component of “Stockholders’ Equity” on the Consolidated Balance Sheets.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>(h) Net Loss per Common Share</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic and diluted net loss per share for all
periods presented is computed by dividing net loss by the weighted average number of shares of common stock and common stock equivalents
outstanding during the period. The pre-funded warrants were determined to be common stock equivalents and have been included in
the weighted average number of shares outstanding for calculation of the basic earnings per share number. Due to the Company’s
net losses, potentially dilutive securities, consisting of options to purchase shares of common stock, warrants on common stock
and non-vested restricted stock issued to employees and non-employee directors, were excluded from the diluted loss per share calculation
due to their anti-dilutive effect.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In computing diluted net loss per share on
the Consolidated Statement of Operations, warrants on common stock, options to purchase shares of common stock and non-vested restricted
stock issued to employees and non-employee directors, totaling 5,565,462 and 1,786,494 for each of the three and nine months ended
January 31, 2020 and 2019, respectively, were excluded from each of the computations as the effect would be anti-dilutive due to
the Company’s losses.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>(i) Share-Based Compensation</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">Costs resulting from
all share-based payment transactions are recognized in the consolidated financial statements at their fair values. The following
table summarizes share-based compensation related to the Company’s share-based plans by expense category for the three and
nine months ended January 31, 2020 and 2019:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><b>Three months ended<br />
January 31,</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><b>Nine months ended<br />
January 31,</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="14" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 44%">Product development</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 11%; text-align: right">12</td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 11%; text-align: right">(14</td>
<td style="width: 1%">)</td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 10%; text-align: right">52</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 10%; text-align: right">7</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Selling, general and administrative</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">44</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">79</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">173</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">193</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt">Total share-based compensation expense</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">56</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">65</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">225</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">200</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(j) Deferred Rent</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 31, 2017, the Company signed a 7-year
lease for approximately 56,000 square feet in Monroe Township, New Jersey that is being used as warehouse/production space, the
Company’s principal offices and corporate headquarters. The lease was classified as an operating lease. Rent payments relating
to the Monroe premises are subject to annual increases. The minimum monthly payments will vary over the 7-year term of the lease.
The Landlord has provided the Company a tenant improvement allowance in an amount up to, but not exceeding, $137,563 to be applied
to the cost of tenant improvement work. The Company recorded lease incentive liability to deferred rent. With the Company’s
adoption of Accounting Standards Update (“ASU”) No. 2016-02 on May 1, 2019, the balances in lease incentive liability
and deferred rent have been included in the value of the right of use asset.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> <b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>(k) <i>Revenue Recognition</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A performance obligation is the unit of account
for revenue recognition. The Company assesses the goods or services promised in a contract with a customer and identifies as a
performance obligation either: a) a good or service (or a bundle of goods or services) that is distinct; or b) a series of distinct
goods or services that are substantially the same and that have the same pattern of transfer to the customer. A contract may contain
a single or multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the contracted
transaction price to each performance obligation based upon the relative standalone selling price, which represents the price the
Company would sell a promised good or service separately to a customer. The Company determines the standalone selling price based
upon the facts and circumstances of each obligated good or service. The majority of the Company’s contracts have no observable
standalone selling price since the associated products and services are customized to customer specifications. As such, the standalone
selling price generally reflects the Company’s forecast of the total cost to satisfy the performance obligation plus an appropriate
profit margin.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The nature of the Company’s contracts
may give rise to several types of variable consideration, including unpriced change orders and liquidated damages and penalties.
Variable consideration can also arise from modifications to the scope of services. Variable consideration is included in the transaction
price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur once the uncertainty
associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to
include such amounts in the transaction price are based largely on our assessment of legal enforceability, performance and any
other information (historical, current, and forecasted) that is reasonably available to us.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; color: red"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes revenue when or as it
satisfies a performance obligation by transferring a good or service to a customer, either (1) at a point in time or (2) over time.
A good or service is transferred when or as the customer obtains control of it. The evaluation of whether control of each performance
obligation is transferred at a point in time or over time is made at contract inception. Input measures such as costs incurred
or time elapsed are utilized to assess progress against specific contractual performance obligations for the Company’s services.
The selection of the method to measure progress towards completion requires judgment and is based on the nature of the services
to be provided. For the Company, the input method using costs incurred or time elapsed best represents the measure of progress
against the performance obligations incorporated within the contractual agreements. When the Company’s estimate of total
costs to be incurred to satisfy the performance obligations exceed revenue, the Company recognizes the loss immediately.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s contracts are either cost
plus or fixed price contracts. Under cost plus contracts, customers are billed for actual expenses incurred plus an agreed-upon
fee. Under cost plus contracts, a profit or loss on a project is recognized depending on whether actual costs are more or less
than the agreed upon amount.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has two types of fixed price contracts,
firm fixed price and cost-sharing. Under firm fixed price contracts, the Company receives an agreed-upon amount for providing products
and services specified in the contract, a profit or loss is recognized depending on whether actual costs are more or less than
the agreed upon amount. Under cost-sharing contracts, the fixed amount agreed upon with the customer is only intended to fund a
portion of the costs on a specific project. Under cost sharing contracts, an amount corresponding to the revenue is recorded in
cost of revenues, resulting in gross profit on these contracts of zero. The Company’s share of the costs is recorded as product
development expense. The Company reports its disaggregation of revenue by contract type since this method best represents the Company’s
business. For the nine-month period ended January 31, 2020 and 2019 all of the Company’s contracts were classified as firm
fixed price.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of January 31, 2020, the Company’s
total remaining performance obligations, also referred to as backlog, totaled $1.4 million. The Company expects to recognize approximately
99%, or $1.3 million, of the remaining performance obligations as revenue over the next twelve months.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>PB3 PowerBuoy® Leasing</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company enters into lease
arrangements with certain customers for their PB3 PowerBuoy® (“PB3”). As of January 31, 2020, the Company
has two lease arrangements with up to 4 months remaining in their terms. Revenue related to multiple-element arrangements is
allocated to lease and non-lease elements based on their relative standalone selling prices or expected cost plus a margin
approach. Lease elements generally include a PB3 and components, while non-lease elements generally include engineering,
monitoring and support services. In the lease arrangement, the customer is provided an option to extend the lease term or
purchase the leased PB3 at some point during and/or at the end of the lease term.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company classifies leases as either operating
or financing in accordance with the authoritative accounting guidance contained within ASC Topic 842, <i>“Leases”.</i> At
inception of the contract, the Company evaluates the lease against the lease classification criteria within ASC Topic 842. If the
direct financing or sales-type classification criteria are met, then the lease is accounted for as a finance lease. All others
are treated as an operating lease.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes revenue from operating
lease arrangements generally on a straight-line basis over the lease term and is presented in Revenues in the Consolidated Statement
of Operations. The lease income for the three and nine months ended January 31, 2020 was immaterial.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(l) Recently Issued Accounting Standards</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the Financial Accounting
Standards Board (“FASB”) issued ASU No. 2016-02, <i>“Leases (Topic 842</i>).” which amends the existing
guidance on accounting for leases. Topic 842 was further clarified and amended within ASU 2017-13, ASU 2018-01, ASU 2018-10, ASU
2018-11 and ASU 2018-20. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and
a lease liability on the balance sheet for all leases with terms longer than twelve months or leases that contain a purchase option
that is reasonably certain to be exercised. Leases will be classified as either finance or operating, with classification affecting
the pattern of expense recognition in the income statement. ASU 2016-02 was effective for annual periods beginning after December
15, 2018, including interim periods within those annual periods, with early adoption permitted. The guidance permits the Company
to utilize the package of practical expedients that, upon adoption of Topic 842, allows entities to (1) not reassess whether any
expired or existing contracts are or contain leases, (2) retain the classification of leases (e.g., operating or finance lease)
existing as of the date of adoption and (3) not reassess initial direct costs for any existing leases. Additionally, the Company
elected to exclude short-term leases having initial terms of 12 months or less and recognizes rent expense on a straight-line basis
over the lease term. The Company adopted Topic 842 on May 1, 2019 using the modified retrospective approach. Under this approach,
comparative periods presented in the financial statements in which the new lease standard is adopted will continue to be presented
in accordance with prior GAAP. The adoption of this standard had an impact on the Company’s Consolidated Balance Sheets,
recognizing a ROU and a lease liability of approximately $1.4 million and $1.5 million, respectively, and eliminating deferred
rent of $39,000 and an unamortized lease incentive receivable of $108,000. Refer to Note 6 to the Consolidated Financial Statements
for disclosure requirements related to the adoption of this standard.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In June 2016, the FASB issued ASU No. 2016-13,
“<i>Financial Instruments </i>- <i>Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” </i>The
amendment in this update replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected
credit losses on instruments within its scope, including trade receivables. This update is intended to provide financial statement
users with more decision-useful information about the expected credit losses. This ASU is effective for annual periods and interim
periods beginning after December 15, 2019. The Company is currently evaluating the impact the adoption of ASU 2016-13 will have
on its consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2018, the FASB issued ASU No. 2018-13, <i>“Fair
Value Measurement (Topic 820).” </i>The ASU modifies, removes, and adds several disclosure requirements on fair value
measurements in Topic 820, Fair Value Measurement. ASU 2018-13 is effective for all entities for fiscal years, and interim periods
within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range
and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description
of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial
fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date.
Early adoption is permitted upon issuance of ASU 2018-13. An entity is permitted to early adopt any removed or modified disclosures
upon issuance of ASU 2018-13 and delay adoption of the additional disclosures until their effective date. The Company is evaluating
the effect ASU 2018-13 will have on its Consolidated Financial Statements and disclosures and has not yet determined the effect
of the standard on its ongoing financial reporting at this time.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2018, the FASB issued ASU No. 2018-15,
“<i>Intangibles </i>— <i>Goodwill and Other </i>— <i>Internal-Use Software (Subtopic 350-40).”</i> The
ASU provides for the recognition of an intangible asset for the costs of internal-use software licenses included in a cloud computing
arrangement. Costs of arrangements that do not include a software license should be accounted for as a service contract and expensed
as incurred. This ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The ASU
permits two methods of adoption: prospectively to all implementation costs incurred after the date of adoption, or retrospectively
to each prior reporting period presented. The Company is evaluating the effect ASU 2018-15 will have on its Consolidated Financial
Statements and disclosures and has not yet determined the effect of the standard on its ongoing financial reporting at this time.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>(8) Warrants</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Liability Classified Warrants</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 2, 2016, the Company entered into a
securities purchase agreement, which was amended on June 7, 2016 (as amended, the “June Purchase Agreement”) with certain
institutional purchasers (the “June Purchasers”). Pursuant to the terms of the June Purchase Agreement, the Company
sold an aggregate of 20,850 shares of Common Stock together with warrants to purchase up to an aggregate of 7,298 shares of Common
Stock. Each share of Common Stock was sold together with a warrant to purchase 0.35 of a share of Common Stock at a combined purchase
price of $92.00. The warrants have an exercise price of $121.60 per share, became exercisable on December 3, 2016 (“Initial
Exercise Date”), and will expire five years following the Initial Exercise Date. As of January 31, 2020, none of the warrants
have been exercised.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 22, 2016, the Company entered into
a Second Amendment to the Purchase Agreement (the “Second Amended Purchase Agreement”) with certain institutional purchasers
(the “July Purchasers”). Pursuant to the terms of the Second Amended Purchase Agreement, the Company sold an aggregate
of 29,750 shares of Common Stock together with warrants to purchase up to an aggregate of 8,925 shares of Common Stock. Each share
of Common Stock was sold together with a warrant to purchase 0.30 of a share of Common Stock at a combined purchase price of $135.00.
The Warrants were exercisable immediately at an exercise price of $187.20 per share. The Warrants will expire on the fifth (5th)
anniversary of the initial date of issuance. As of January 31, 2020, none of the warrants have been exercised.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Equity Classified Warrants</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 8, 2019, the Company issued and sold
1,542,000 shares of common stock and pre-funded warrants to purchase up to 3,385,680 shares of common stock and common warrants
to purchase up to 4,927,680 shares of our common stock in an underwritten public offering. The public offering price for the pre-funded
warrants was equal to the public offering price of the common stock, less the $0.01 per share exercise price of each warrant. The
pre-funded warrants have no expiration date. As of January 31, 2020, 3,246,400 of the pre-funded warrants have been exercised.
The common stock warrants have an exercise price of $3.85 per share and expire five years from the issuance date. As of January
31, 2020, none of the common stock warrants have been exercised.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for warrants issued in
connection with its June and July 2016 public offerings in accordance with the guidance on “<i>Accounting for Certain Financial
Instruments with Characteristics of Both Liabilities and Equity</i>” in Topic 480 which provides that the Company classify
the warrant instruments as a liability at its fair value. The warrant liabilities are subject to re-measurement at each balance
sheet date using the Black-Scholes option pricing model. The June and July 2016 warrants contain a feature whereby they could require
the transfer of assets and therefore are classified as a liability award in accordance with the guidance in Topic 480. The warrants
have a value of zero at January 31, 2020 and $6,000 at April 30, 2019 and are reflected within “Warrant liabilities”
in the Consolidated Balance Sheets. The pre-funded and common warrants issued in the Company’s April 8, 2019 public offering
did not meet the criteria to be classified as a liability award and therefore were treated as an equity award and recorded as a
component of stockholders’ equity in the Consolidated Balance Sheets.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">An unrealized gain of approximately zero and
$47,000 for the three months ended January 31, 2020 and 2019, respectively, and $6,000 and $183,000 for the nine months ended January
31, 2020 and 2019, respectively, were included within “Gain due to change in fair value of warrant liabilities” in
the Consolidated Statements of Operations. The Company determined the fair value using the Black-Scholes option pricing model with
the following assumptions:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2019</b></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Dividend rate</td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 20%; text-align: right">0.0</td>
<td style="width: 1%">%</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 19%; text-align: right">0.0</td>
<td style="width: 1%">%</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Risk-free rate</td>
<td> </td>
<td> </td>
<td style="text-align: right">1.5</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">2.4</td>
<td>%</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Expected life (years)</td>
<td> </td>
<td> </td>
<td style="text-align: right">1.3 - 1.4</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">2.5 - 2.8</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Expected volatility</td>
<td> </td>
<td> </td>
<td style="text-align: right">109.8% - 130.1</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">90.8% - 142.7</td>
<td>%</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b></b></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>(12) Stock-Based Compensation</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2015, upon approval by the Company’s
stockholders, the Company’s 2015 Omnibus Incentive Plan (the “2015 Plan”) became effective. A total of 12,036
shares were authorized for issuance under the 2015 Omnibus Incentive Plan, including shares available for awards under the 2006
Stock Incentive Plan remaining at the time that plan terminated, or that were subject to awards under the 2006 Stock Incentive
Plan that thereafter terminated by reason of expiration, forfeiture, cancellation or otherwise. On October 21, 2016 upon approval
by the Company’s stockholders the Company increased the number of shares authorized for issuance to 32,036. On December 7,
2018, upon approval by the Company’s stockholders, the Company increased the number of shares authorized for issuance to
132,036. On December 20, 2019, upon approval by the Company’s stockholders, the Company increased the number of shares authorized
for issuance to 732,036. If any award under the 2006 Stock Incentive Plan or 2015 Plan expires, is cancelled, terminates unexercised
or is forfeited, those shares become again available for grant under the 2015 Plan. The 2015 Plan will terminate ten years after
its effective date, in October 2025, but is subject to earlier termination as provided in the 2015 Plan. As of January 31, 2020,
the Company has 167,784 shares available for future issuance under the 2015 Plan.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 18, 2018, the Company’s Board
of Directors adopted the Company’s Employment Inducement Incentive Award Plan (the “2018 Inducement Plan”) pursuant
to which the Company reserved 25,000 shares of common stock for issuance under the Inducement Plan. In accordance with Rule 5635(c)(4)
and Rule 5635(c)(3) of the Nasdaq Listing Rules, awards under the Inducement Plan may only be made to individuals not previously
employees of the Company (or following such individuals’ bona fide period of non-employment with the Company), as an inducement
material to the individuals’ entry into employment with the Company. An award is any right to receive the Company’s
common stock pursuant to the 2018 Inducement Plan, consisting of a performance share award, restricted stock award, a restricted
stock unit award or a stock payment award. As of January 31, 2020, there were 11,487 shares available for grant under the 2018
Inducement Plan.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Stock Options</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company estimates the fair value of each
stock option award granted with service-based vesting requirements, using the Black-Scholes option pricing model, assuming no dividends,
and using the weighted average valuation assumptions noted in the following table. The risk-free rate is based on the US Treasury
yield curve in effect at the time of grant. The expected life (estimated period of time outstanding) of the stock options granted
was estimated using the “simplified” method as permitted by the SEC’s Staff Accounting Bulletin No. 110, <i>Share-Based
Payment.</i> Expected volatility was based on the Company’s historical volatility over the expected life of the stock option
granted. There were 411,666 and 49,750 shares granted in the three and nine months ended January 31, 2020 and 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Three months ended <br />
January 31,</b></font></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Nine months ended<br />
January 31,</b></font></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2020</b></font></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 32%"><font style="font-size: 10pt">Risk-free interest rate</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">1.7</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">2.7</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">1.7</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">2.7</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Expected dividend yield</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.0</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.0</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.0</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.0</font></td>
<td><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Expected life (in years)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">5.5- 5.7</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">5.5</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">5.5- 5.7</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">5.5</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Expected volatility</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">127.6% - 128.2</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">126.4</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">127.6% - 128.2</font></td>
<td><font style="font-size: 10pt">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">126.4</font></td>
<td><font style="font-size: 10pt">%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Performance Stock Options</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company in January of 2020 issued 81,334
performance-based stock options to two of its executives. The awards can vest over 2 years if there is positive total shareholder
return (e.g. share price increase) as measured to the 5-day (January 11-15, 2021) and (January 10-14, 2022) share price VWAP. There
were 81,334 shares unvested and outstanding for the nine months ended January 31, 2020. The Company determined these awards contain
a market- based condition and estimated the fair value using the Monte Carlo simulation model with the following assumptions:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 79%"><font style="font-size: 10pt">Risk-free interest rate</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 18%; text-align: right"><font style="font-size: 10pt">2.3</font></td>
<td style="width: 1%"><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Expected dividend yield</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">0.0</font></td>
<td><font style="font-size: 10pt">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Expected life (in years)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">10.0</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Expected volatility</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">115.0</font></td>
<td><font style="font-size: 10pt">%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A summary of stock options under our stock
incentive plans is detailed in the following table.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Weighted</b></font></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Average</b></font></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Weighted</b></font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Remaining</b></font></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Shares</b></font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Average</b></font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Contractual</b></font></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Underlying</b></font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Exercise</b></font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Term</b></font></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Options</b></font></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>Price</b></font></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>(In Years)</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 49%"><font style="font-size: 10pt">Outstanding as of April 30, 2019</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">65,572</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">21.08</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 14%; text-align: right"><font style="font-size: 10pt">8.9</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Granted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">493,000</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1.05</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Exercised</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">-</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Cancelled/forfeited</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(2,073</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">$</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font-size: 10pt">52.66</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Outstanding as of January 31, 2020</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">556,499</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">3.24</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">9.7</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Exercisable as of January 31, 2020</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">63,499</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">20.21</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">8.0</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of January 31, 2020, the total intrinsic
value of both outstanding and exercisable options was zero. As of January 31, 2020, approximately 493,000 additional options were
unvested, which had no intrinsic value and a weighted average remaining contractual term of 10.0 years. There was approximately
$207,000 and $151,000 of total recognized compensation cost related to stock options during each of the nine months ended January
31, 2020 and 2019, respectively. As of January 31, 2020, there was approximately $429,000 of total unrecognized compensation cost
related to non-vested stock options granted under the plans. This cost is expected to be recognized over a weighted-average period
of 1.2 years. The Company typically issues newly authorized but unissued shares to satisfy option exercises under these plans.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Restricted Stock</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Compensation expense for non-vested restricted
stock is generally recorded based on its market value on the date of grant and recognized ratably over the associated service and
performance period. During the nine months ended January 31, 2020, the Company granted 13,513 shares subject to service-based vesting
requirements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A summary of non-vested restricted stock under
our stock incentive plans is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Weighted</b></font></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Number</b></font></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt"><b>Average Price </b></font></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>of Shares</b></font></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>per Share</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 58%"><font style="font-size: 10pt">Issued and unvested at April 30, 2019</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 18%; text-align: right"><font style="font-size: 10pt">4,506</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 18%; text-align: right"><font style="font-size: 10pt">30.08</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Granted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">13,513</font></td>
<td> </td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1.48</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Vested</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">(4,380</font></td>
<td><font style="font-size: 10pt">)</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">30.14</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Cancelled/forfeited</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(126</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">$</font></td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font-size: 10pt">28.00</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Issued and unvested at January 31, 2020</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">13,513</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">$</font></td>
<td style="padding-bottom: 2.5pt; text-align: right"><font style="font-size: 10pt">1.48</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There was approximately $10,000 and $49,000
of total recognized compensation cost related to restricted stock for the nine months ended January 31, 2020 and 2019, respectively.
As of January 31, 2020, there is 15,000 unrecognized compensation cost remaining related to unvested restricted stock granted under
our plans.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended January 31, 2020,
the Company granted 51,547 shares, subject to service-based vesting requirements, to an executive that were outside the Company
stock incentive plans. There was approximately $8,000 of total recognized compensation cost related to this award for the nine
months ended January 31, 2020. As of January 31, 2020, there is $43,000 unrecognized compensation cost remaining related to this
award.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>(13) Fair Value Measurements</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company measures and reports certain financial
and non-financial assets and liabilities on a fair value basis. Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). GAAP
specifies a three-level hierarchy that is used when measuring and disclosing fair value. The fair value hierarchy gives the highest
priority to quoted prices available in active markets (i.e., observable inputs) and the lowest priority to data lacking transparency
(i.e., unobservable inputs). An instrument’s categorization within the fair value hierarchy is based on the lowest level
of significant input to its valuation. The following is a description of the three hierarchy levels.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 62px">Level 1</td>
<td style="text-align: justify">Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Active markets are considered to be those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis.</td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td>Level 2</td>
<td style="text-align: justify">Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in inactive markets.</td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td>Level 3</td>
<td style="text-align: justify">Unobservable inputs are not corroborated by market data. This category is comprised of financial and non-financial assets and liabilities whose fair value is estimated based on internally developed models or methodologies using significant inputs that are generally less readily observable from objective sources.</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Transfers into or out of any hierarchy level
are recognized at the end of the reporting period in which the transfers occurred. There were no transfers between any levels during
each of the nine months ended January 31, 2020 and 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following information is provided to help
readers gain an understanding of the relationship between amounts reported in the accompanying consolidated financial statements
and the related market or fair value. The disclosures include financial instruments and derivative financial instruments, other
than investment in affiliates.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Following are descriptions of the valuation
methodologies used to measure material assets and liabilities at fair value and details of the valuation models, key inputs to
those models and significant assumptions utilized.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Warrant Liabilities</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of the Company’s warrant
liabilities (refer to Note 8) recorded in the Company’s financial statements is determined using the Black-Scholes option
pricing model and the quoted price of the Company’s common stock in an active market, volatility and expected life, is a
Level 3 measurement. Volatility is based on the actual market activity of the Company’s stock. The expected life is based
on the remaining contractual term of the warrants and the risk-free interest rate is based on the implied yield available on U.S.
Treasury Securities with a maturity equivalent to the warrants’ expected life.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table presents financial assets
and liabilities measured at fair value on a recurring basis as of January 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 23%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 2%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; width: 16%; text-align: center"><b>Total Carrying<br />
Value in<br />
Consolidated<br />
Balance Sheet</b></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 2%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; width: 16%; text-align: center"><b>Quoted prices in<br />
active markets for<br />
identical assets or<br />
liabilities<br />
(Level 1)</b></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 2%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; width: 15%; text-align: center"><b>Significant other<br />
observable inputs<br />
(Level 2)</b></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; width: 15%; text-align: center"><b>Significant<br />
unobservable<br />
inputs<br />
(Level 3)</b></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="13" style="text-align: center">(in thousands)</td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Warrant liabilities</td>
<td> </td>
<td>$</td>
<td style="text-align: right">-</td>
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">-</td>
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">-</td>
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">-</td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table presents financial assets
and liabilities measured at fair value on a recurring basis as of April 30, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 23%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 2%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; width: 16%; text-align: center"><b>Total Carrying<br />
Value in<br />
Consolidated<br />
Balance Sheet</b></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 2%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; width: 16%; text-align: center"><b>Quoted prices in<br />
active markets for<br />
identical assets or<br />
liabilities<br />
(Level 1)</b></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 2%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; width: 15%; text-align: center"><b>Significant other<br />
observable inputs<br />
(Level 2)</b></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; width: 15%; text-align: center"><b>Significant<br />
unobservable<br />
inputs<br />
(Level 3)</b></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="13" style="text-align: center">(in thousands)</td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Warrant liabilities</td>
<td> </td>
<td>$</td>
<td style="text-align: right">6</td>
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">-</td>
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">-</td>
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">6</td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table provides a summary of changes
in fair value of the Company’s warrant liabilities held at January 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="5" style="border-bottom: black 1.5pt solid; text-align: center">Fair Value Measurement Using Significant Unobservable Inputs (Level 3)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center">Total</td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center">Warrant</td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">Liability</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 79%">Fair value – April 30, 2018</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 17%; text-align: right">201</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Change in fair value</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">(195</td>
<td style="padding-bottom: 1.5pt">)</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Fair value – April 30, 2019</td>
<td> </td>
<td> </td>
<td style="text-align: right">6</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt">Change in fair value</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">(6</td>
<td style="padding-bottom: 1.5pt">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt">Fair value – January 31, 2020</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">-</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">There were no other re-measured assets or
liabilities at fair value on a non-recurring basis during the nine months ended January 31, 2020 and 2019.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>(14) Commitments and Contingencies</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Employment Litigation </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 10, 2014, the Company announced that
it had terminated Charles Dunleavy as its Chief Executive Officer and as an employee of the Company for cause, effective June 9,
2014, and that Mr. Dunleavy had also been removed from his position as Chairman of the Board of Directors. On June 17, 2014, Mr.
Dunleavy wrote to the Company stating that he had retained counsel to represent him in connection with an alleged wrongful termination
of his employment. On July 28, 2014, Mr. Dunleavy resigned from the Board and the boards of directors of the Company’s subsidiaries.
In 2014, the Company and Mr. Dunleavy entered into a tolling agreement with respect to his alleged employment claims pending resolution
of a securities class action and shareholder derivative litigation. The securities class action was resolved in November 2017 and
the derivatives litigation was resolved in June 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">On August 28, 2018,
counsel for Mr. Dunleavy filed a demand for arbitration, captioned <i>Charles F. Dunleavy v. Ocean Power Technologies, Inc.,</i>
Case No. 01-18-0003-2374, before the American Arbitration Association in New Jersey. The demand names Ocean Power Technologies,
Inc. as the respondent and alleges various claims and seeks declaratory relief and permanent injunction. The demand seeks damages
in the amount of $5 million for compensatory and punitive damages, plus interest and attorneys’ fees as well as certain equitable
relief. On November 8, 2018, the Company through counsel responded to the demand for arbitration, denied all allegations, and asserted
various affirmative defenses. On April 5, 2019, a three-person arbitration panel scheduled the discovery process to run from April
12, 2019 until November 9, 2019, set a pre-hearing case management conference for October 14, 2019, and set the hearing for December
9-13, 2019 in Princeton, New Jersey. On September 30, 2019, the parties completed the factual discovery process and the Company
identified its expert witnesses. On October 14, 2019, the parties participated in a pre-hearing case management conference with
arbitration panel and altered slightly the dates for the hearing. The hearing was conducted in Princeton, New Jersey between December
9-11, 2019, and between December 16-18, 2019, and on December 18, 2019 the panel decided to continue the hearing for at least another
day of testimony on May 18, 2020. As of January 31, 2020, the Company has not accrued any provision related to this matter since
it is not probable and cannot reasonably estimate the loss contingency.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>FINRA Review</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 4, 2019, FINRA notified the Company
that it was conducting a routine review of the Company’s stock associated with two public announcements and asked several
questions regarding: (i) an April 3, 2019 announcement that the Company had won a contract with a leading oil and gas operator;
and (ii) an April 4, 2019 announcement of the pricing of an underwritten public offering. The Company provided its response to
the FINRA questions on April 9, 2019. As of March 9, 2020, FINRA has not provided any follow-up.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>  </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Spain Income Tax Audit</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is currently undergoing an income
tax audit in Spain for the period from 2008 to 2014, when our Spanish branch was closed. The branch reported net operating losses
for each of the years reported that the Spanish tax inspector claims should have been capitalized on the balance sheet instead
of charged as an expense in the Consolidated Statement of Operations. As of April 30, 2017, the Company had recorded a penalty
of $132,000 to Selling, general and administrative costs in the Consolidated Statement of Operations. The Spanish tax inspector
has recently closed its discussion relating to the capitalization of expenses and as of April 30, 2018 the Company reversed the
penalty. However, the Spanish tax inspector has now raised questions with respect to the Company’s recognition of funds
received in 2011 to 2014 from a governmental grant from the European Commission in connection with the Waveport project. It is
anticipated that the Company will be assessed a penalty relating to these tax years. The Company has estimated this penalty to
be $177,000 and as of January 31, 2020 and April 30, 2019 has recorded the penalty in Accrued expenses in the Consolidated Balance
Sheets.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>(15) Income Taxes</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three and nine months ended January
31, 2019, the Company recorded an income tax benefit of $0.9 million, representing the proceeds from the sale of $9.1 million of
New Jersey net operating loss carryforwards and research and development tax credits. During the three and nine months ended January
31, 2020, the Company has not received any proceeds from the sale of its New Jersey net operating loss carryforwards and research and development
tax credits.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other than the sale of New Jersey net operating
loss carryforwards and research and development tax credits, the Company did not recognize any consolidated income tax benefit
(expense) during the three and nine months ended January 31, 2020 and 2019. The Company has recorded a valuation allowance to reduce
its net deferred tax asset to an amount that is more likely than not to be realized in future years. Accordingly, the benefit of
the net operating loss that would have been recognized was offset by changes in the valuation allowance.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Uncertain Tax Positions</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company applies the guidance issued by
the FASB for the accounting and reporting of uncertain tax positions. The guidance requires the Company to recognize in its consolidated
financial statements the impact of a tax position if that position is more likely than not to be sustained upon examination, based
on the technical merits of the position. The Company is currently undergoing an income tax audit in Spain for the period from
2008 to 2014, when our Spanish branch was closed (see Note 14 to the Consolidated Financial Statements). At January 31, 2020 the
Company had no other unrecognized tax positions. The Company does not expect any material increase or decrease in its income tax
expense in the next twelve months, related to examinations or uncertain tax positions. U.S. federal and state income tax returns
were audited through fiscal 2014 and fiscal 2010 respectively. Net operating loss and credit carry forwards since inception remain
open to examination by taxing authorities and will continue to remain open for a period of time after utilization.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>(16) Operating Segments and Geographic Information</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s business consists of one
segment as this represents management’s view of the Company’s operations. The Company operates on a worldwide basis
with one operating company in the US and subsidiaries in the UK and in Australia. Revenues and expenses are generally attributed
to the operating unit that bills the customers. During the three and nine months ended January 31, 2020 and 2019, the Company’s
primary business operations were in North America.</p>
16660000
860000
15800000
9877000
948000
8929000
0.001
0.001
0.001
5000000
5000000
5000000
0.001
0.001
100000000
100000000
5425517
8699319
3770
4251
-9133000
-9741000
-9133000
-9741000
-2919000
-2611000
-2919000
-2611000
15775000
18000
-300000
208216000
-197538000
-160000
9774000
5000
-301000
226026000
-209784000
-171000
3599000
1449000
9000
20000
-302000
-301000
229167000
209173000
-218917000
-207279000
-183000
-164000
10236000
7000
19000
-302000
-301000
227214000
208714000
-215998000
-204668000
-173000
-165000
10749000
18424939
-74012
5425517
-3770
8699319
20390109
-4251
-75782
6489668
19067868
-4251
-75782
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The table below shows the percentage of the
Company’s revenues derived from customers whose revenues accounted for at least 10% of the Company’s consolidated revenues
for at least one of the periods indicated:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><b>Three months ended<br />
January 31,</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><b>Nine months ended<br />
January 31,</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid"><b>Customer</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2019</b></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 44%">Eni S.p.A.</td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right">6</td>
<td style="width: 1%">%</td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right">53</td>
<td style="width: 1%">%</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 10%; text-align: right">10</td>
<td style="width: 1%">%</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 10%; text-align: right">60</td>
<td style="width: 1%">%</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Premier Oil UK Limited</td>
<td> </td>
<td> </td>
<td style="text-align: right">1</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">47</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">11</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">35</td>
<td>%</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>EGP</td>
<td> </td>
<td> </td>
<td style="text-align: right">93</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">0</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">68</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">5</td>
<td>%</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Other</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">0</td>
<td style="padding-bottom: 1.5pt">%</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">0</td>
<td style="padding-bottom: 1.5pt">%</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">11</td>
<td style="padding-bottom: 1.5pt">%</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">0</td>
<td style="padding-bottom: 1.5pt">%</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right">100</td>
<td style="padding-bottom: 2.5pt">%</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right">100</td>
<td style="padding-bottom: 2.5pt">%</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right">100</td>
<td style="padding-bottom: 2.5pt">%</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right">100</td>
<td style="padding-bottom: 2.5pt">%</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The following table
summarizes share-based compensation related to the Company’s share-based plans by expense category for the three and nine
months ended January 31, 2020 and 2019:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><b>Three months ended<br />
January 31,</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><b>Nine months ended<br />
January 31,</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="14" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 44%">Product development</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 11%; text-align: right">12</td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 11%; text-align: right">(14</td>
<td style="width: 1%">)</td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 10%; text-align: right">52</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 10%; text-align: right">7</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Selling, general and administrative</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">44</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">79</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">173</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">193</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt">Total share-based compensation expense</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">56</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">65</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">225</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">200</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Accrued expenses consist of the following at January 31, 2020 and
April 30, 2019:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>April 30, 2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="6" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Project costs</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 20%; text-align: right">21</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 19%; text-align: right">9</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Contract loss reserve</td>
<td> </td>
<td> </td>
<td style="text-align: right">264</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">211</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Employee incentive payments</td>
<td> </td>
<td> </td>
<td style="text-align: right">682</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">580</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Accrued salary and benefits</td>
<td> </td>
<td> </td>
<td style="text-align: right">470</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">500</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Legal and accounting fees</td>
<td> </td>
<td> </td>
<td style="text-align: right">303</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">273</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Accrued taxes payable</td>
<td> </td>
<td> </td>
<td style="text-align: right">177</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">177</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt">Other</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">292</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">188</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">2,208</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">1,938</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A summary of stock options under our stock
incentive plans is detailed in the following table.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><b>Weighted</b></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><b>Average</b></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><b>Weighted</b></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><b>Remaining</b></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><b>Shares</b></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><b>Average</b></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><b>Contractual</b></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><b>Underlying</b></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><b>Exercise</b></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><b>Term</b></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>Options</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>Price</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>(In Years)</b></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 48%">Outstanding as of April 30, 2019</td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 14%; text-align: right">65,572</td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 14%; text-align: right">21.08</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 13%; text-align: right">8.9</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Granted</td>
<td> </td>
<td> </td>
<td style="text-align: right">493,000</td>
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">1.05</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Exercised</td>
<td> </td>
<td> </td>
<td style="text-align: right">-</td>
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Cancelled/forfeited</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">(2,073</td>
<td style="padding-bottom: 1.5pt">)</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt">$</td>
<td style="padding-bottom: 1.5pt; text-align: right">52.66</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"> </td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt">Outstanding as of January 31, 2020</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right">556,499</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt">$</td>
<td style="padding-bottom: 2.5pt; text-align: right">3.24</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: right">9.7</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt">Exercisable as of January 31, 2020</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right">63,499</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt">$</td>
<td style="padding-bottom: 2.5pt; text-align: right">20.21</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt; text-align: right">8.0</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A summary of non-vested restricted stock under
our stock incentive plans is as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><b>Weighted</b></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><b>Number</b></td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><b>Average Price</b></td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>of Shares</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>per Share</b></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 58%">Issued and unvested at April 30, 2019</td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 18%; text-align: right">4,506</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 17%; text-align: right">30.08</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Granted</td>
<td> </td>
<td> </td>
<td style="text-align: right">13,513</td>
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">1.48</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Vested</td>
<td> </td>
<td> </td>
<td style="text-align: right">(4,380</td>
<td>)</td>
<td> </td>
<td>$</td>
<td style="text-align: right">30.14</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Cancelled/forfeited</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">(126</td>
<td style="padding-bottom: 1.5pt">)</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt">$</td>
<td style="padding-bottom: 1.5pt; text-align: right">28.00</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt">Issued and unvested at January 31, 2020</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right">13,513</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt">$</td>
<td style="padding-bottom: 2.5pt; text-align: right">1.48</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table presents financial assets
and liabilities measured at fair value on a recurring basis as of January 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 23%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 2%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; width: 16%; text-align: center"><b>Total Carrying<br />
Value in<br />
Consolidated<br />
Balance Sheet</b></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 2%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; width: 16%; text-align: center"><b>Quoted prices in<br />
active markets for<br />
identical assets or<br />
liabilities<br />
(Level 1)</b></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 2%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; width: 15%; text-align: center"><b>Significant other<br />
observable inputs<br />
(Level 2)</b></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; width: 15%; text-align: center"><b>Significant<br />
unobservable<br />
inputs<br />
(Level 3)</b></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="13" style="text-align: center">(in thousands)</td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Warrant liabilities</td>
<td> </td>
<td>$</td>
<td style="text-align: right">-</td>
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">-</td>
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">-</td>
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">-</td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table presents financial assets
and liabilities measured at fair value on a recurring basis as of April 30, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 23%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 2%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; width: 16%; text-align: center"><b>Total Carrying<br />
Value in<br />
Consolidated<br />
Balance Sheet</b></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 2%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; width: 16%; text-align: center"><b>Quoted prices in<br />
active markets for<br />
identical assets or<br />
liabilities<br />
(Level 1)</b></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 2%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; width: 15%; text-align: center"><b>Significant other<br />
observable inputs<br />
(Level 2)</b></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td>
<td style="border-bottom: black 1.5pt solid; width: 15%; text-align: center"><b>Significant<br />
unobservable<br />
inputs<br />
(Level 3)</b></td>
<td style="width: 1%; padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="13" style="text-align: center">(in thousands)</td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Warrant liabilities</td>
<td> </td>
<td>$</td>
<td style="text-align: right">6</td>
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">-</td>
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">-</td>
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">6</td>
<td> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>(a) Consolidation</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying consolidated financial statements
include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany balances and transactions
have been eliminated in consolidation.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>(b) Use of Estimates</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The preparation of
the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating
to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated
financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates
and assumptions include the fair value of warrant liabilities, estimated costs to complete projects; and percentage of completion
of customer contracts for purposes of revenue recognition. Actual results could differ from those estimates.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>(c) Cash, Cash Equivalents, Restricted Cash and Security Agreements</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Cash and Cash Equivalents</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents. The Company invests excess cash in a money market
account.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>April 30, 2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="6" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Checking and savings accounts</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 20%; text-align: right">948</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 19%; text-align: right">860</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Money market account</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">8,929</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">15,800</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">9,877</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">16,660</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Restricted Cash and Security Agreements</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A portion of the Company’s cash is restricted
under the terms of various security agreements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">One agreement is between the Company and Barclays
Bank. Under this agreement, the cash is on deposit at Barclays Bank and serves as security for letters of credit and bank guarantees
that are expected to be issued by Barclays Bank on behalf of OPT LTD, one of the Company’s subsidiaries, under a credit facility
established by Barclays Bank for OPT LTD. The credit facility is approximately €0.3 million ($0.4 million) and carries a
fee of 1% per annum of the amount of any such obligations issued by Barclays Bank. The credit facility does not have an expiration
date but is cancelable at the discretion of the bank. As of January 31, 2020, there were no letters of credit outstanding under
this agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The other agreements are between the Company
and Santander Bank. Cash is on deposit at Santander Bank and serves as security for a letter of credit issued by Santander Bank
for the lease of warehouse/office space in Monroe Township, New Jersey. This agreement cannot be extended beyond January 31, 2025
and is cancelable at the discretion of the bank. Santander Bank also issued two letters of credit to subsidiaries of Enel Green
Power (“EGP”) pursuant to the Company’s contracts with EGP. The first letter of credit was issued in the amount
of $125,690 that expires in October 2020. The second letter of credit was issued in the amount of $645,467. This second letter
of credit will be reduced to $322,734 in March 2020 and to $64,547 in May 2020. The remaining amount expires in April 2021. Restricted
cash includes the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>April 30, 2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="6" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Barclay’s Bank Agreement</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 20%; text-align: right">-</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 19%; text-align: right">344</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Santander Bank</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">928</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">155</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">928</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">499</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table provides a reconciliation
of cash, cash equivalents and restricted cash reported within the Statement of Financial Position that sum to the total of the
same such amounts shown in the Statement of Cash Flows.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>April 30, 2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="6" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Cash and cash equivalents</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 20%; text-align: right">9,877</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 19%; text-align: right">16,660</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Restricted cash- short term</td>
<td> </td>
<td> </td>
<td style="text-align: right">707</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">344</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt">Restricted cash- long term</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">221</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">155</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">10,805</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">17,159</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>(d) Foreign Exchange Gains and Losses</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company maintains cash accounts that are
denominated in British pounds sterling, Euros and Australian dollars. These amounts are included in cash, cash equivalents and
restricted cash on the accompanying Consolidated Balance Sheets. Such positions may result in realized and unrealized foreign
exchange gains or losses from exchange rate fluctuations, which are included in “Foreign exchange gain/(loss)” in
the accompanying Consolidated Statements of Operations.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>(e) Property and Equipment</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment is stated at cost,
less accumulated depreciation and amortization. Depreciation and amortization is calculated using the straight-line method over
the estimated useful lives (three to seven years) of the assets. Leasehold improvements are amortized using the straight-line
method over the shorter of the estimated useful life of the asset or the remaining lease term. Expenses for maintenance and repairs
are charged to operations as incurred. Property and equipment is also reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured
by a comparison of the carrying amount of the asset to estimated undiscounted future cash flows expected to be generated by the
asset. If the carrying amount of the asset exceeds its estimated future cash flows, then an impairment charge is recognized in
the amount by which the carrying amount of the asset exceeds the fair value of the asset.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>(f) Concentration of Credit Risk</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Financial instruments that potentially subject
the Company to credit risk consist principally of trade accounts receivable and cash. The Company believes that its credit risk
is limited because the Company’s current contracts are with companies with strong financial strength. The Company invests
its excess cash in a money market fund and does not believe that it is exposed to any significant risks related to its cash accounts
and money market fund. Cash is also maintained at foreign financial institutions. Cash in foreign financial institutions as of
January 31, 2020 was $0.3 million.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The table below shows the percentage of the
Company’s revenues derived from customers whose revenues accounted for at least 10% of the Company’s consolidated revenues
for at least one of the periods indicated:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><b>Three months ended<br />
January 31,</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><b>Nine months ended<br />
January 31,</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid"><b>Customer</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2019</b></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 44%">Eni S.p.A.</td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right">6</td>
<td style="width: 1%">%</td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right">53</td>
<td style="width: 1%">%</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 10%; text-align: right">10</td>
<td style="width: 1%">%</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 10%; text-align: right">60</td>
<td style="width: 1%">%</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Premier Oil UK Limited</td>
<td> </td>
<td> </td>
<td style="text-align: right">1</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">47</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">11</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">35</td>
<td>%</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>EGP</td>
<td> </td>
<td> </td>
<td style="text-align: right">93</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">0</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">68</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">5</td>
<td>%</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Other</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">0</td>
<td style="padding-bottom: 1.5pt">%</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">0</td>
<td style="padding-bottom: 1.5pt">%</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">11</td>
<td style="padding-bottom: 1.5pt">%</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">0</td>
<td style="padding-bottom: 1.5pt">%</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right">100</td>
<td style="padding-bottom: 2.5pt">%</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right">100</td>
<td style="padding-bottom: 2.5pt">%</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right">100</td>
<td style="padding-bottom: 2.5pt">%</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right">100</td>
<td style="padding-bottom: 2.5pt">%</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The loss of, or a significant reduction in
revenues from a current customer could significantly impact the Company’s financial position or results of operations. The
Company does not require its customers to maintain collateral.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>(h) Net Loss per Common Share</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic and diluted net loss per share for all
periods presented is computed by dividing net loss by the weighted average number of shares of common stock and common stock equivalents
outstanding during the period. The pre-funded warrants were determined to be common stock equivalents and have been included in
the weighted average number of shares outstanding for calculation of the basic earnings per share number. Due to the Company’s
net losses, potentially dilutive securities, consisting of options to purchase shares of common stock, warrants on common stock
and non-vested restricted stock issued to employees and non-employee directors, were excluded from the diluted loss per share calculation
due to their anti-dilutive effect.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In computing diluted net loss per share on
the Consolidated Statement of Operations, warrants on common stock, options to purchase shares of common stock and non-vested
restricted stock issued to employees and non-employee directors, totaling 5,565,462 and 1,786,494 for each of the three and nine
months ended January 31, 2020 and 2019, respectively, were excluded from each of the computations as the effect would be anti-dilutive
due to the Company’s losses.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>(i) Share-Based Compensation</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">Costs resulting from
all share-based payment transactions are recognized in the consolidated financial statements at their fair values. The following
table summarizes share-based compensation related to the Company’s share-based plans by expense category for the three and
nine months ended January 31, 2020 and 2019:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><b>Three months ended<br />
January 31,</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><b>Nine months ended<br />
January 31,</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="14" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 44%">Product development</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 11%; text-align: right">12</td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 11%; text-align: right">(14</td>
<td style="width: 1%">)</td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 10%; text-align: right">52</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 10%; text-align: right">7</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Selling, general and administrative</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">44</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">79</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">173</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">193</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt">Total share-based compensation expense</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">56</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">65</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">225</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">200</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(l) Recently Issued Accounting Standards</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the Financial Accounting
Standards Board (“FASB”) issued ASU No. 2016-02, <i>“Leases (Topic 842</i>).” which amends the existing
guidance on accounting for leases. Topic 842 was further clarified and amended within ASU 2017-13, ASU 2018-01, ASU 2018-10, ASU
2018-11 and ASU 2018-20. The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and
a lease liability on the balance sheet for all leases with terms longer than twelve months or leases that contain a purchase option
that is reasonably certain to be exercised. Leases will be classified as either finance or operating, with classification affecting
the pattern of expense recognition in the income statement. ASU 2016-02 was effective for annual periods beginning after December
15, 2018, including interim periods within those annual periods, with early adoption permitted. The guidance permits the Company
to utilize the package of practical expedients that, upon adoption of Topic 842, allows entities to (1) not reassess whether any
expired or existing contracts are or contain leases, (2) retain the classification of leases (e.g., operating or finance lease)
existing as of the date of adoption and (3) not reassess initial direct costs for any existing leases. Additionally, the Company
elected to exclude short-term leases having initial terms of 12 months or less and recognizes rent expense on a straight-line basis
over the lease term. The Company adopted Topic 842 on May 1, 2019 using the modified retrospective approach. Under this approach,
comparative periods presented in the financial statements in which the new lease standard is adopted will continue to be presented
in accordance with prior GAAP. The adoption of this standard had an impact on the Company’s Consolidated Balance Sheets,
recognizing a ROU and a lease liability of approximately $1.4 million and $1.5 million, respectively, and eliminating deferred
rent of $39,000 and an unamortized lease incentive receivable of $108,000. Refer to Note 6 to the Consolidated Financial Statements
for disclosure requirements related to the adoption of this standard.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In June 2016, the FASB issued ASU No. 2016-13,
“<i>Financial Instruments </i>- <i>Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” </i>The
amendment in this update replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected
credit losses on instruments within its scope, including trade receivables. This update is intended to provide financial statement
users with more decision-useful information about the expected credit losses. This ASU is effective for annual periods and interim
periods beginning after December 15, 2019. The Company is currently evaluating the impact the adoption of ASU 2016-13 will have
on its consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2018, the FASB issued ASU No. 2018-13, <i>“Fair
Value Measurement (Topic 820).” </i>The ASU modifies, removes, and adds several disclosure requirements on fair value
measurements in Topic 820, Fair Value Measurement. ASU 2018-13 is effective for all entities for fiscal years, and interim periods
within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range
and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description
of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial
fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date.
Early adoption is permitted upon issuance of ASU 2018-13. An entity is permitted to early adopt any removed or modified disclosures
upon issuance of ASU 2018-13 and delay adoption of the additional disclosures until their effective date. The Company is evaluating
the effect ASU 2018-13 will have on its Consolidated Financial Statements and disclosures and has not yet determined the effect
of the standard on its ongoing financial reporting at this time.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2018, the FASB issued ASU No. 2018-15,
“<i>Intangibles </i>— <i>Goodwill and Other </i>— <i>Internal-Use Software (Subtopic 350-40).”</i> The
ASU provides for the recognition of an intangible asset for the costs of internal-use software licenses included in a cloud computing
arrangement. Costs of arrangements that do not include a software license should be accounted for as a service contract and expensed
as incurred. This ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The ASU
permits two methods of adoption: prospectively to all implementation costs incurred after the date of adoption, or retrospectively
to each prior reporting period presented. The Company is evaluating the effect ASU 2018-15 will have on its Consolidated Financial
Statements and disclosures and has not yet determined the effect of the standard on its ongoing financial reporting at this time.</p>
2020
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table provides a reconciliation
of cash, cash equivalents and restricted cash reported within the Statement of Financial Position that sum to the total of the
same such amounts shown in the Statement of Cash Flows.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>April 30, 2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="6" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Cash and cash equivalents</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 20%; text-align: right">9,877</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 19%; text-align: right">16,660</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Restricted cash- short term</td>
<td> </td>
<td> </td>
<td style="text-align: right">707</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">344</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt">Restricted cash- long term</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">221</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">155</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">10,805</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">17,159</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The remaining amount expires in April 2021.
Restricted cash includes the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>April 30, 2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="6" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Barclay’s Bank Agreement</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 20%; text-align: right">-</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 19%; text-align: right">344</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Santander Bank</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">928</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">155</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">928</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">499</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b><i></i></b></p>
63000
70000
171000
225000
200000
52000
173000
7000
193000
56000
65000
12000
-14000
44000
79000
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>(j) Deferred Rent</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 31, 2017, the Company signed a 7-year
lease for approximately 56,000 square feet in Monroe Township, New Jersey that is being used as warehouse/production space, the
Company’s principal offices and corporate headquarters. The lease was classified as an operating lease. Rent payments relating
to the Monroe premises are subject to annual increases. The minimum monthly payments will vary over the 7-year term of the lease.
The Landlord has provided the Company a tenant improvement allowance in an amount up to, but not exceeding, $137,563 to be applied
to the cost of tenant improvement work. The Company recorded lease incentive liability to deferred rent. With the Company’s
adoption of Accounting Standards Update (“ASU”) No. 2016-02 on May 1, 2019, the balances in lease incentive liability
and deferred rent have been included in the value of the right of use asset.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents. The Company invests excess cash in a money market
account.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>April 30, 2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="6" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Checking and savings accounts</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 20%; text-align: right">948</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 19%; text-align: right">860</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Money market account</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">8,929</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">15,800</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">9,877</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">16,660</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>(7) Accrued Expenses</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Accrued expenses consist of the following at January 31, 2020 and
April 30, 2019:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>April 30, 2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="6" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Project costs</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 20%; text-align: right">21</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 19%; text-align: right">9</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Contract loss reserve</td>
<td> </td>
<td> </td>
<td style="text-align: right">264</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">211</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Employee incentive payments</td>
<td> </td>
<td> </td>
<td style="text-align: right">682</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">580</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Accrued salary and benefits</td>
<td> </td>
<td> </td>
<td style="text-align: right">470</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">500</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Legal and accounting fees</td>
<td> </td>
<td> </td>
<td style="text-align: right">303</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">273</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Accrued taxes payable</td>
<td> </td>
<td> </td>
<td style="text-align: right">177</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">177</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt">Other</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">292</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">188</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">2,208</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">1,938</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>(3) Account Receivable, Contract Assets, and Contract Liabilities</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following provides further details on the
balance sheet accounts of accounts receivable, contract assets, and contract liabilities.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Accounts Receivable</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company grants credit to its customers,
generally without collateral, under normal payment terms (typically 30 to 60 days after invoicing). Generally, invoicing occurs
after the related services are performed or control of good has transferred to the customer. Accounts receivable represents an
unconditional right to consideration arising from the Company’s performance under contracts with customers. The carrying
value of such receivables represent their estimated realizable value. Accounts receivable consisted of the following at January
31, 2020 and April 30, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>April 30, 2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="6" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Opening balance</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 20%; text-align: right">63</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 19%; text-align: right">171</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Amount invoiced to customer</td>
<td> </td>
<td> </td>
<td style="text-align: right">1,217</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">857</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt">Collections</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">(1,210</td>
<td style="padding-bottom: 1.5pt">)</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">(965</td>
<td style="padding-bottom: 1.5pt">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt">Ending balance</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">70</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">63</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Contract Assets and Contract Liabilities</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Contract assets include unbilled amounts typically
resulting from arrangements whereby the right to payment is conditioned on completing additional tasks or services for a performance
obligation. The increase in contract assets is primarily a result of services performed but unbilled during the nine months ended
January 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Contract liabilities consist of amounts invoiced
to customers in excess of revenue recognized. The increase in contract liabilities is primarily a result of an advance payment
made by EGP during the nine months ended January 31, 2020.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounts receivable consisted of the following
at January 31, 2020 and April 30, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>April 30, 2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="6" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Opening balance</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 20%; text-align: right">63</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 19%; text-align: right">171</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Amount invoiced to customer</td>
<td> </td>
<td> </td>
<td style="text-align: right">1,217</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">857</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt">Collections</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">(1,210</td>
<td style="padding-bottom: 1.5pt">)</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">(965</td>
<td style="padding-bottom: 1.5pt">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt">Ending balance</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">70</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">63</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><i></i></p>
Non-accelerated Filer
true
false
6000
6000
6000
1131000
440000
725000
268000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>(k) <i>Revenue Recognition</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A performance obligation is the unit of account
for revenue recognition. The Company assesses the goods or services promised in a contract with a customer and identifies as a
performance obligation either: a) a good or service (or a bundle of goods or services) that is distinct; or b) a series of distinct
goods or services that are substantially the same and that have the same pattern of transfer to the customer. A contract may contain
a single or multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the contracted
transaction price to each performance obligation based upon the relative standalone selling price, which represents the price the
Company would sell a promised good or service separately to a customer. The Company determines the standalone selling price based
upon the facts and circumstances of each obligated good or service. The majority of the Company’s contracts have no observable
standalone selling price since the associated products and services are customized to customer specifications. As such, the standalone
selling price generally reflects the Company’s forecast of the total cost to satisfy the performance obligation plus an appropriate
profit margin.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The nature of the Company’s contracts
may give rise to several types of variable consideration, including unpriced change orders and liquidated damages and penalties.
Variable consideration can also arise from modifications to the scope of services. Variable consideration is included in the transaction
price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur once the uncertainty
associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to
include such amounts in the transaction price are based largely on our assessment of legal enforceability, performance and any
other information (historical, current, and forecasted) that is reasonably available to us.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; color: red"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes revenue when or as it
satisfies a performance obligation by transferring a good or service to a customer, either (1) at a point in time or (2) over time.
A good or service is transferred when or as the customer obtains control of it. The evaluation of whether control of each performance
obligation is transferred at a point in time or over time is made at contract inception. Input measures such as costs incurred
or time elapsed are utilized to assess progress against specific contractual performance obligations for the Company’s services.
The selection of the method to measure progress towards completion requires judgment and is based on the nature of the services
to be provided. For the Company, the input method using costs incurred or time elapsed best represents the measure of progress
against the performance obligations incorporated within the contractual agreements. When the Company’s estimate of total
costs to be incurred to satisfy the performance obligations exceed revenue, the Company recognizes the loss immediately.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s contracts are either cost
plus or fixed price contracts. Under cost plus contracts, customers are billed for actual expenses incurred plus an agreed-upon
fee. Under cost plus contracts, a profit or loss on a project is recognized depending on whether actual costs are more or less
than the agreed upon amount.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has two types of fixed price contracts,
firm fixed price and cost-sharing. Under firm fixed price contracts, the Company receives an agreed-upon amount for providing products
and services specified in the contract, a profit or loss is recognized depending on whether actual costs are more or less than
the agreed upon amount. Under cost-sharing contracts, the fixed amount agreed upon with the customer is only intended to fund a
portion of the costs on a specific project. Under cost sharing contracts, an amount corresponding to the revenue is recorded in
cost of revenues, resulting in gross profit on these contracts of zero. The Company’s share of the costs is recorded as product
development expense. The Company reports its disaggregation of revenue by contract type since this method best represents the Company’s
business. For the nine-month period ended January 31, 2020 and 2019 all of the Company’s contracts were classified as firm
fixed price.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of January 31, 2020, the Company’s
total remaining performance obligations, also referred to as backlog, totaled $1.4 million. The Company expects to recognize approximately
99%, or $1.3 million, of the remaining performance obligations as revenue over the next twelve months.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>PB3 PowerBuoy® Leasing</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company enters into lease
arrangements with certain customers for their PB3 PowerBuoy® (“PB3”). As of January 31, 2020, the Company
has two lease arrangements with up to 4 months remaining in their terms. Revenue related to multiple-element arrangements is
allocated to lease and non-lease elements based on their relative standalone selling prices or expected cost plus a margin
approach. Lease elements generally include a PB3 and components, while non-lease elements generally include engineering,
monitoring and support services. In the lease arrangement, the customer is provided an option to extend the lease term or
purchase the leased PB3 at some point during and/or at the end of the lease term.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company classifies leases as either operating
or financing in accordance with the authoritative accounting guidance contained within ASC Topic 842, <i>“Leases”.</i> At
inception of the contract, the Company evaluates the lease against the lease classification criteria within ASC Topic 842. If the
direct financing or sales-type classification criteria are met, then the lease is accounted for as a finance lease. All others
are treated as an operating lease.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes revenue from operating
lease arrangements generally on a straight-line basis over the lease term and is presented in Revenues in the Consolidated Statement
of Operations. The lease income for the three and nine months ended January 31, 2020 was immaterial.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table provides a summary of changes
in fair value of the Company’s warrant liabilities held at January 31, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td colspan="5" style="border-bottom: black 1.5pt solid; text-align: center">Fair Value Measurement Using Significant Unobservable Inputs (Level 3)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"> </td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center">Total</td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center">Warrant</td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">Liability</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 79%">Fair value – April 30, 2018</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 17%; text-align: right">201</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Change in fair value</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">(195</td>
<td style="padding-bottom: 1.5pt">)</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Fair value – April 30, 2019</td>
<td> </td>
<td> </td>
<td style="text-align: right">6</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt">Change in fair value</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">(6</td>
<td style="padding-bottom: 1.5pt">)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt">Fair value – January 31, 2020</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">-</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="margin: 0pt"></p>
Yes
Yes
false
9255500
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The components of property and equipment, net
as of January 31, 2020 and April 30, 2019 consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>April 30, 2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="6" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Equipment</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 20%; text-align: right">342</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 19%; text-align: right">339</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Computer equipment & software</td>
<td> </td>
<td> </td>
<td style="text-align: right">719</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">558</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Office furniture & equipment</td>
<td> </td>
<td> </td>
<td style="text-align: right">341</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">341</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Leasehold improvements</td>
<td> </td>
<td> </td>
<td style="text-align: right">474</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">474</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Equipment under capitalized lease</td>
<td> </td>
<td> </td>
<td style="text-align: right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">103</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Construction in process</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">15</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">15</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">1,891</td>
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">1,830</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Less: accumulated depreciation</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">(1,355</td>
<td style="padding-bottom: 1.5pt">)</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">(1,238</td>
<td style="padding-bottom: 1.5pt">)</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid">$</td>
<td style="border-bottom: black 1.5pt solid; text-align: right">536</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid">$</td>
<td style="border-bottom: black 1.5pt solid; text-align: right">592</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>(5) Property and Equipment, net</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The components of property and equipment, net
as of January 31, 2020 and April 30, 2019 consisted of the following:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>April 30, 2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="6" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Equipment</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 20%; text-align: right">342</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 19%; text-align: right">339</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Computer equipment & software</td>
<td> </td>
<td> </td>
<td style="text-align: right">719</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">558</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Office furniture & equipment</td>
<td> </td>
<td> </td>
<td style="text-align: right">341</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">341</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Leasehold improvements</td>
<td> </td>
<td> </td>
<td style="text-align: right">474</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">474</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Equipment under capitalized lease</td>
<td> </td>
<td> </td>
<td style="text-align: right">-</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">103</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Construction in process</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">15</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">15</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">1,891</td>
<td> </td>
<td> </td>
<td>$</td>
<td style="text-align: right">1,830</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Less: accumulated depreciation</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">(1,355</td>
<td style="padding-bottom: 1.5pt">)</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">(1,238</td>
<td style="padding-bottom: 1.5pt">)</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid">$</td>
<td style="border-bottom: black 1.5pt solid; text-align: right">536</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid">$</td>
<td style="border-bottom: black 1.5pt solid; text-align: right">592</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Depreciation expense was approximately $40,000
and $45,000 for the three-month period ended January 31, 2020 and 2019, and approximately $117,000 and $135,000 for the nine-month
period ended January 31, 2020 and 2019, respectively.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>(g) Warrant Accounting</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for warrants issued in
connection with its public offerings in accordance with the guidance on “Accounting for Certain Financial Instruments with
Characteristics of Both Liabilities and Equity” in Accounting Standards Codification (“ASC”) Topic 480 which
provides that warrants meeting the classification of a liability award are recorded as a liability at its fair value. The warrant
liabilities are subject to re-measurement at each balance sheet date using the Black-Scholes option pricing model. The Company
recognizes any change in fair value in its Consolidated Statements of Operations within “Gain due to the change in fair
value of warrant liabilities.” The Company will continue to adjust the carrying value of the warrants for changes in the
estimated fair value until such time as these instruments are exercised or expire. At that time, the liabilities will be reclassified
to “Additional paid-in capital”, a component of “Stockholders’ Equity” on the Consolidated Balance
Sheets.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>(10) Common Stock</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has 100,000,000 shares authorized
with a par value of $0.001 per share. As of January 31, 2020, there were 8,699,319 shares issued.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 13, 2018, the Company entered
into a common stock purchase agreement with Aspire Capital which provided that, subject to certain terms, conditions and
limitations, Aspire Capital was committed to purchase up to an aggregate of $10.0 million of shares of the Company’s
common stock over a 30-month period that does not exceed 19.99% of the outstanding common stock on the date of the agreement.
The number of shares the Company could issue within the 19.99% is 183,591 shares. Shareholder approval was not needed since
the number of common stock offered for sale in the common stock purchase agreement did not exceed 19.99% of the outstanding
common stock on the date of the agreement. In consideration for entering into the agreement, the Company issued to Aspire
Capital 21,429 shares of common stock as a commitment fee. The agreement was cancelled on October 24, 2019, and as of that
date, the Company had sold 162,162 shares of common stock with an aggregate market value of $949,259 at an average price of
$5.85 per share pursuant to this common stock purchase agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 24, 2019, the Company entered into
a new common stock purchase agreement with Aspire Capital which provides that, subject to certain terms, conditions and limitations,
Aspire Capital is committed to purchase up to an aggregate of $10.0 million of shares of the Company’s common stock over
a 30-month period that does not exceed 19.99% of the outstanding common stock on the date of the agreement. The number of shares
the Company can issue within the 19.99% limit is 1,219,010 shares. Shareholder approval is needed for sale of common stock over
the 19.99% limit of the outstanding common stock on the date of the agreement. At the 2019 annual meeting of stockholders, held
on December 20, 2019, the Company’s stockholders approved an additional 5,400,000 shares to be issued pursuant to the common
stock purchase agreement. In consideration for entering into the agreement, the Company issued to Aspire Capital 194,805 shares
of common stock as a commitment fee. As of January 31, 2020, the Company has sold 1,024,205 shares of common stock with an aggregate
market value of $901,206 at an average price of $0.88 per share pursuant to this common stock purchase agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 7, 2019, the Company entered into
the 2019 ATM Facility with AGP, under which the Company may issue and sell to or through A.G.P./Alliance Global Partners, acting
as agent and/or principal, shares of the Company’s common stock having an aggregate offering price of up to $25 million.
As of January 31, 2020, under the 2019 ATM Facility the Company had issued and sold 1,527,145 shares of its common stock with an
aggregate market value of $2.9 million at an average price of $1.91 per share and paid AGP a sales commission of approximately
$94,724 related to those shares.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 8, 2019, the Company sold 1,542,000
shares of common stock, which includes the sale of 642,000 shares of the Company’s common stock sold by the Company pursuant
to the exercise, in full, of the over-allotment option by the underwriters in a public offering, prefunded warrants to purchase
up to 3,385,680 shares of common stock and common warrants to purchase up to 4,927,680 shares of common stock in an underwritten
public offering. The net proceeds to the Company from the offering were approximately $15.7 million, after deducting underwriter’s
fees and offering expenses payable by the Company.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>(11) Treasury Shares</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended January 31, 2020
and 2019, 481 and 1,770 shares of common stock, respectively, were purchased by the Company from employees to pay taxes related
to the vesting of restricted stock and are reflected in Treasury Stock as of January 31, 2020.</p>
1215000
1400000
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>(4) Other Current Assets</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other current assets consist of the following
at January 31, 2020 and April 30, 2019:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>April 30, 2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="6" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Deposits</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 20%; text-align: right">71</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 19%; text-align: right">63</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Other receivables</td>
<td> </td>
<td> </td>
<td style="text-align: right">273</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">44</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Prepaid insurance</td>
<td> </td>
<td> </td>
<td style="text-align: right">161</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">93</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Prepaid offering costs</td>
<td> </td>
<td> </td>
<td style="text-align: right">423</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">144</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt">Prepaid expenses- other</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">167</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">193</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">1,095</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">537</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>(6) Leases</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Lessor Information</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of January 31, 2020, the Company has two
leases which have been classified as operating leases per accounting guidance contained within ASC Topic 842,” <i>Leases”</i>.
The Company’s remaining operating lease term on these leases is less than a year. The maturity of lease payments remaining
on this lease is immaterial. The accounting of the operating lease income according to ASC Topic 842, “Leases” is similar
to the accounting in prior years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Lessee Information</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has one lease for its facility
located in Monroe Township, New Jersey that is used as warehouse/production space and the Company’s principal offices and
corporate headquarters. The initial lease term is for 7 years with an option to extend the lease for another 5 years. The lease
is classified as an operating lease. The operating lease is included in right-of-use assets, lease liabilities- current and lease
liabilities- long-term on the Company’s Consolidated Balance Sheets. The Company has elected the package of practical expedients
which applies to leases that commenced before the adoption date. By electing the package of practical expedients, the Company did
not need to reassess whether any existing contracts are or contain leases, the lease classification for any existing leases and
initial direct costs for any existing leases.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Right-of-use asset and operating lease liabilities
are recognized based on the present value of future minimum lease payments over the lease term at commencement date. When the implicit
rate of the lease is not provided or cannot be determined, the Company used the incremental borrowing rate based on the information
available at the effective date to determine the present value of future payments. Lease terms may include options to extend or
terminate the lease when it is reasonably certain that the Company will exercise those options. The renewal options have not been
included in the lease term as they are not reasonably certain of exercise. Lease expense for minimum lease payments is recognized
on a straight- line basis over the lease term and consists of interest on the lease liability and the amortization of the right
of use asset. Variable lease expenses, if any, are recorded as incurred. The operating lease straight-line expense in the Consolidated
Statement of Operations for the three and nine months ended January 31, 2020 was $79,000 and $238,000. The operating cash flows
from operating leases cash payments for the three and nine months ended January 31, 2020 was $82,000 and $240,000.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">  </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Information related to the Company’s right-of use assets and
lease liabilities as of January 31, 2020 was as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>January 31, 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: center"><font style="font-size: 10pt">(in thousands)</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt"><u>Operating lease:</u></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 77%"><font style="font-size: 10pt">Operating right-of-use asset, net</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font-size: 10pt">$</font></td>
<td style="width: 20%; text-align: right"><font style="font-size: 10pt">1,215</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 10pt"><font style="font-size: 10pt">Right-of-use liability- current</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">222</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; padding-left: 10pt"><font style="font-size: 10pt">Right-of-use liability- long term</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">1,139</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Total lease liability</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">1,361</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">Weighted average remaining lease term- operating leases</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">4.74 years</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Weighted average discount rate- operating leases</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">8.5</font></td>
<td><font style="font-size: 10pt">%</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Total remaining lease payments under the Company’s operating
leases are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>January 31, 2020</b></font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt">(in thousands)</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 77%"><font style="font-size: 10pt">2020 (Feb- April)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 20%; text-align: right"><font style="font-size: 10pt">82</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">2021</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">331</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">2022</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">341</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">2023</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">352</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">2024</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">362</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Thereafter</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">184</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">Total future minimum lease payments</font></td>
<td> </td>
<td><font style="font-size: 10pt">$</font></td>
<td style="text-align: right"><font style="font-size: 10pt">1,652</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Less imputed interest</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(291</font></td>
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Total</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">1,361</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>ASC 840 Disclosure</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b> </b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company elected the modified retrospective
transition method and is required to present previously disclosed information under the prior accounting standard for leases.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>Lessee Information</i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i> </i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Future minimum lease payments under the Company’s
operating lease as of April 30, 2019 are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt"><b>April 30, 2019</b></font></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center"><font style="font-size: 10pt">(in thousands)</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 77%"><font style="font-size: 10pt">2020</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 20%; text-align: right"><font style="font-size: 10pt">322</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">2021</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">331</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">2022</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">341</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font-size: 10pt">2023</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">352</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><font style="font-size: 10pt">2024</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font-size: 10pt">362</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Thereafter</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">184</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">1,892</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="margin: 0pt"></p>
8000
207000
151000
10000
49000
1024205
1024205
1024205
5400000
12036
32036
132036
732036
P10Y
2025-10-31
25000
167784
11487
51547
411666
49750
81334
411666
49750
493000
556499
65572
P10Y
P1Y2M12D
13513
13513
493000
81334
43000
429000
15000
2073
63499
3.24
21.08
1.05
52.66
20.21
P8Y10M25D
P9Y8M12D
P8Y
4506
13513
4380
126
30.08
1.48
1.48
30.14
28.00
201000
6000
-195000
-6000
5000000
1.00
132000
177000
177000
Net operating loss and credit carry forwards since inception remain open to examination by taxing authorities and will continue to remain open for a period of time after utilization.
1
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>(9) Preferred Stock</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has authorized 5,000,000 shares
of undesignated preferred stock with a par value of $0.001 per share. As of January 31, 2020, and 2019, no shares of preferred
stock had been issued.</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Other current assets consist of the following
at January 31, 2020 and April 30, 2019:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>April 30, 2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="6" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Deposits</td>
<td style="width: 2%"> </td>
<td style="width: 1%">$</td>
<td style="width: 20%; text-align: right">71</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 19%; text-align: right">63</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Other receivables</td>
<td> </td>
<td> </td>
<td style="text-align: right">273</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">44</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Prepaid insurance</td>
<td> </td>
<td> </td>
<td style="text-align: right">161</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">93</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Prepaid offering costs</td>
<td> </td>
<td> </td>
<td style="text-align: right">423</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">144</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt">Prepaid expenses- other</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">167</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">193</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">1,095</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">537</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Total remaining lease payments under the Company’s operating
leases are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 77%">2020 (Feb- April)</td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 19%; text-align: right">82</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>2021</td>
<td> </td>
<td> </td>
<td style="text-align: right">331</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>2022</td>
<td> </td>
<td> </td>
<td style="text-align: right">341</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>2023</td>
<td> </td>
<td> </td>
<td style="text-align: right">352</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>2024</td>
<td> </td>
<td> </td>
<td style="text-align: right">362</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Thereafter</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">184</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Total future minimum lease payments</td>
<td> </td>
<td>$</td>
<td style="text-align: right">1,652</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Less imputed interest</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">(291</td>
<td style="padding-bottom: 1.5pt">)</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt">Total</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">1,361</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b></b></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Future minimum lease payments under the Company’s
operating lease as of April 30, 2019 are as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>April 30, 2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td colspan="2" style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 77%">2020</td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 19%; text-align: right">322</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>2021</td>
<td> </td>
<td> </td>
<td style="text-align: right">331</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>2022</td>
<td> </td>
<td> </td>
<td style="text-align: right">341</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>2023</td>
<td> </td>
<td> </td>
<td style="text-align: right">352</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>2024</td>
<td> </td>
<td> </td>
<td style="text-align: right">362</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1.5pt">Thereafter</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">184</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">1,892</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b></b></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company determined the fair value using
the Black-Scholes option pricing model with the following assumptions:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2019</b></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 54%">Dividend rate</td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 20%; text-align: right">0.0</td>
<td style="width: 1%">%</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 19%; text-align: right">0.0</td>
<td style="width: 1%">%</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Risk-free rate</td>
<td> </td>
<td> </td>
<td style="text-align: right">1.5</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">2.4</td>
<td>%</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Expected life (years)</td>
<td> </td>
<td> </td>
<td style="text-align: right">1.3 - 1.4</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">2.5 - 2.8</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Expected volatility</td>
<td> </td>
<td> </td>
<td style="text-align: right">109.8% - 130.1</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">90.8% - 142.7</td>
<td>%</td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Information related to the Company’s right-of use assets and
lease liabilities as of January 31, 2020 was as follows:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b> </b></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>January 31, 2020</b></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: center">(in thousands)</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td><u>Operating lease:</u></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 77%">Operating right-of-use asset, net</td>
<td style="width: 1%"> </td>
<td style="width: 1%">$</td>
<td style="width: 20%; text-align: right">1,215</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 10pt">Right-of-use liability- current</td>
<td> </td>
<td> </td>
<td style="text-align: right">222</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 1.5pt; padding-left: 10pt">Right-of-use liability- long term</td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: black 1.5pt solid"> </td>
<td style="border-bottom: black 1.5pt solid; text-align: right">1,139</td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt">Total lease liability</td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double">$</td>
<td style="border-bottom: black 2.25pt double; text-align: right">1,361</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Weighted average remaining lease term- operating leases</td>
<td> </td>
<td> </td>
<td style="text-align: right">4.74 years</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Weighted average discount rate- operating leases</td>
<td> </td>
<td> </td>
<td style="text-align: right">8.5</td>
<td>%</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b></b></p>
225000
200000
225000
200000
56000
65000
56000
65000
64928
-82939
65060
-97297
614280
264280
-16000
1000
-16000
2000
2000
-481
-1770
1000
1000
1000
1000
-12000
-4000
-12000
-4000
-11000
1000
-11000
1000
194805
428571
295000
295000
1000
294000
295000
850000
1000
849000
901206
850000
1000
849000
1375584
1619538
856106
1419538
1791000
464000
1000
2000
1790000
462000
1046000
395000
1000
1000
1045000
394000
344000
707000
15000
35000
537000
1095000
17619000
11784000
592000
536000
155000
221000
18366000
13756000
312000
118000
1938000
2208000
188000
295000
222000
2444000
2843000
1139000
147000
2591000
3982000
5000
9000
301000
302000
226026000
229167000
-209784000
-218917000
-171000
-183000
18366000
13756000
-12000
-4000
-11000
1000
-9145000
-9745000
-2930000
-2610000
263000
135000
7000
-105000
-71000
20000
85000
-19000
203000
-194000
-116000
257000
281000
5000
-600000
-18000
-147000
107000
256000
-8631000
-9850000
25000
50000
61000
54000
-61000
-29000
464000
850000
1520000
16000
23000
1000
1000
2353000
440000
-15000
-58000
-6354000
-9497000
17159000
10805000
2728000
12225000
1000
13000
2000
295000
295000
17159000
10805000
10000000
10000000
0.1999
0.1999
183591
1219010
21429
194805
1542000
642000
1527145
162162
1.91
0.88
5.85
2900000
949259
25000000
15700000
94724
4927680
3385680
1-for-20 reverse stock split
300000
400000
0.01
125690
645467
322734
64547
2020-10-31
2021-04-30
P3Y
P7Y
300000
0.10
0.10
0.11
0.11
1.00
0.60
0.35
0.00
1.00
0.68
0.05
0.06
0.53
0.01
0.47
0.00
0.93
0.00
0.00
1.00
1.00
5565462
1786494
5565462
1786494
P7Y
P4M
P7Y
56000
137563
1300000
0.99
1
2
1361000
1500000
39000
108000
499000
344000
155000
928000
928000
1217000
857000
1210000
965000
63000
71000
44000
273000
93000
161000
144000
423000
193000
167000
117000
135000
40000
45000
1830000
1891000
558000
339000
341000
474000
103000
15000
342000
719000
341000
474000
15000
1238000
1355000
The initial lease term is for 7 years with an option to extend the lease for another 5 years.
238000
79000
240000
82000
P4Y8M26D
0.085
82000
331000
341000
352000
362000
184000
1652000
291000
322000
331000
341000
352000
362000
184000
1892000
9000
21000
211000
264000
580000
682000
500000
470000
273000
303000
177000
177000
188000
292000
0.35
0.30
92.00
135.00
121.60
187.20
3.85
0.01
P5Y
P5Y
P5Y
P1Y3M19D
P1Y4M24D
P2Y6M
P2Y9M18D
3246400
6000
183000
0
47000
0.000
1.5
0.000
0.024
1.098
1.301
0.908
1.427
0.1999
0.1999
481
1770
The awards can vest over 2 years if there is positive total shareholder return (e.g. share price increase) as measured to the 5-day (January 11-15, 2021) and (January 10-14, 2022) share price VWAP.
0.017
0.027
0.017
0.027
0.023
0.000
0.000
0.000
0.000
0.000
P5Y6M
P5Y6M
P5Y6M
P5Y8M12D
P5Y6M
P5Y8M12D
P10Y
1.264
1.264
1.276
1.282
1.276
1.282
1.150
0
0
1335000
1180000
681000
400000
-204000
-740000
44000
-132000
3403000
4105000
896000
1382000
5629000
5909000
2093000
2008000
9032000
10014000
2989000
3390000
-9236000
-10754000
-2945000
-3522000
-6000
-183000
-47000
102000
23000
27000
2000
-5000
-43000
-1000
12000
-9133000
-10591000
-2919000
-3461000
850000
850000
-1.40
-10.46
-0.46
-2.72
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><b>Three months ended<br />
January 31,</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="6" style="border-bottom: black 1.5pt solid; text-align: center"><b>Nine months ended<br />
January 31,</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2019</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2020</b></td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td style="padding-bottom: 1.5pt; text-align: center"> </td>
<td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><b>2019</b></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td>
<td> </td>
<td colspan="2"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 32%">Risk-free interest rate</td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 14%; text-align: right">1.7</td>
<td style="width: 1%">%</td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 14%; text-align: right">2.7</td>
<td style="width: 1%">%</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 13%; text-align: right">1.7</td>
<td style="width: 1%">%</td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 13%; text-align: right">2.7</td>
<td style="width: 1%">%</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Expected dividend yield</td>
<td> </td>
<td> </td>
<td style="text-align: right">0.0</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">0.0</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">0.0</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">0.0</td>
<td>%</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Expected life (in years)</td>
<td> </td>
<td> </td>
<td style="text-align: right">5.5- 5.7</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">5.5</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">5.5- 5.7</td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right">5.5</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Expected volatility</td>
<td> </td>
<td> </td>
<td style="text-align: right">127.6% - 128.2</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">126.4</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">127.6% - 128.2</td>
<td>%</td>
<td> </td>
<td> </td>
<td style="text-align: right">126.4</td>
<td>%</td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company determined these awards contain
a market- based condition the Company estimated the fair value using the Monte Carlo simulation model with the following assumptions:</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="width: 79%">Risk-free interest rate</td>
<td style="width: 2%"> </td>
<td style="width: 1%"> </td>
<td style="width: 17%; text-align: right">2.3</td>
<td style="width: 1%">%</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Expected dividend yield</td>
<td> </td>
<td> </td>
<td style="text-align: right">0.0</td>
<td>%</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td>Expected life (in years)</td>
<td> </td>
<td> </td>
<td style="text-align: right">10.0</td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Expected volatility</td>
<td> </td>
<td> </td>
<td style="text-align: right">115.0</td>
<td>%</td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>(17) Subsequent Event</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Nasdaq Delisting Notification</u></i></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On March 3, 2020, the Company received a notification
from the Nasdaq Stock Market (the “NASDAQ”) indicating that the minimum bid price of the Company’s common stock
has been below $1.00 per share for 30 consecutive business days and as a result, the Company is not in compliance with the minimum
bid price requirement for continued listing. The Nasdaq notice has no immediate effect on the listing or trading of the Company’s
common stock. Under the Nasdaq Listing Rules, the Company has a grace period of 180 calendar days, or until August 31, 2020, in
which to regain compliance with the minimum bid price rule. To regain compliance, the closing bid price of the Company’s
common stock must meet or exceed $1.00 per share for a minimum of ten consecutive business days during this grace period.</p>
The Company received a notification from the Nasdaq Stock Market (the "NASDAQ") indicating that the minimum bid price of the Company's common stock has been below $1.00 per share for 30 consecutive business days and as a result, the Company is not in compliance with the minimum bid price requirement for continued listing. The Nasdaq notice has no immediate effect on the listing or trading of the Company's common stock. Under the Nasdaq Listing Rules, the Company has a grace period of 180 calendar days, or until August 31, 2020, in which to regain compliance with the minimum bid price rule. To regain compliance, the closing bid price of the Company's common stock must meet or exceed $1.00 per share for a minimum of ten consecutive business days during this grace period.
271000
6543500000
931052000
6318162000
959287000
9100000
9100000
20850
29750
1542000
7298
8925
4927680
3385680
1400000