v3.26.3
Fair Value Measurement
 3 Months Ended
Jul. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurement

8. Fair Value Measurement

The following table presents the Company’s fair value hierarchy for its classified assets and liabilities measured at fair value on a recurring basis as of July 31, 2026 and April 30, 2026:

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

July 31, 2026

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Money market funds

 

$

22,766

 

 

$

—

 

 

$

—

 

U.S. treasury securities

 

 

—

 

 

 

176,144

 

 

 

—

 

Total assets

 

$

22,766

 

 

$

176,144

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

April 30, 2026

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Money market funds

 

$

22,146

 

 

$

—

 

 

$

—

 

U.S. treasury securities

 

 

—

 

 

 

195,338

 

 

 

—

 

Total assets

 

$

22,146

 

 

$

195,338

 

 

$

—

 

Liabilities

 

 

 

 

 

 

 

 

 

Warrant liabilities

 

$

—

 

 

$

—

 

 

$

1,369

 

Total liabilities

 

$

—

 

 

$

—

 

 

$

1,369

 

The Company classifies its money market funds, which are valued based on quoted market prices in active markets with no valuation adjustment, as cash and cash equivalents within the fair value hierarchy.

The fair value and amortized cost of available-for-sale marketable securities as of July 31, 2026 are presented in the following table:

 

 

 

 

 

 

Gross Unrealized

 

 

 

 

 

 

Amortized Cost Basis

 

 

Unrealized Gains

 

 

Unrealized Losses

 

 

Fair Value

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

22,766

 

 

$

—

 

 

$

—

 

 

$

22,766

 

U.S. treasury securities

 

 

176,615

 

 

 

2

 

 

 

(473

)

 

 

176,144

 

Total

 

$

199,381

 

 

$

2

 

 

$

(473

)

 

$

198,910

 

 

As of July 31, 2026 available-for-sale marketable securities are classified as follows in the interim unaudited condensed consolidated balance sheet:

 

Category:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

 

 

$

22,766

 

Short-term investments

 

 

 

 

 

 

 

 

130,353

 

Long-term investments

 

 

 

 

 

 

 

 

45,791

 

Total

 

 

 

 

 

 

 

$

198,910

 

 

Short-term investments have a contractual maturity date that is one year or less from the respective balance sheet date. Long-term investments have a contractual maturity date that is more than one year from the respective balance sheet date. The Company recognized no credit losses during the three months ended July 31, 2026 and 2025, and had no allowance for credit losses as of July 31, 2026, and 2025.

As of July 31, 2026 and April 30, 2026, the fair value of the long-term debt, net of discounts, approximated $72,495 and $47,700, respectively. The fair value of long-term debt was determined using quoted market prices, when available, or discounted cash flows based on various factors, including maturity schedules and current market rates. Long-term debt has been classified as Level 2 of the fair value hierarchy.

There were no transfers into or out of the Level 1, 2 or 3 fair value hierarchies during the three months ended July 31, 2026 and 2025.

Warrant Liabilities

As of April 30, 2026, the Company recorded warrant liabilities from issuance of warrants to the lender of the Term Loan 2024 in connection with the amendment on February 25, 2025. The warrant liabilities are based on significant inputs not observable in the market, which represent a Level 3 measurement within the fair value hierarchy. The Company’s valuation of the warrant liabilities utilized the Black-Scholes option-pricing model, which incorporates assumptions and estimates to value the warrants. The assumptions used in the valuation were not significantly different from those used as of April 30, 2026. In connection with the settlement of the Term Loan 2024 as part of the Company's Term Loan 2026 financing transaction, the warrants were extinguished and the related warrant liabilities were derecognized. Immediately prior to the extinguishment, the warrant liabilities were remeasured to fair value. The resulting $1,620 gain on extinguishment was recorded as a component of loss from extinguishment of debt.

As of April 30, 2026, the quantitative elements associated with the Company’s Level 3 inputs impacting the fair value measurement of the warrant liabilities included the fair value per share of the underlying Common Shares, the remaining contractual term of the warrant, risk-free interest rate, expected dividend yield and expected volatility of the price of the underlying Common Shares. The expected volatility is derived from comparable public companies as the Company did not have sufficient trading history for the Company’s Common Shares. The change in fair value of warrant liability is included in other expense (income) within the unaudited interim condensed consolidated statements of operations and comprehensive loss.

The following table presents the significant inputs and assumptions used in the Black-Scholes option pricing model to determine the fair value of the warrant liabilities as of April 30, 2026:

 

 

 

April 30, 2026

 

Strike price

 

$

11.54

 

Expected term (in years)

 

 

7.42

 

Expected volatility

 

 

59.00

%

Risk free rate

 

 

4.20

%

Dividend yield

 

 

0

%

A reconciliation of the Level 3 liabilities is as follows:

Fair value of Level 3 liabilities as of April 30, 2026

 

$

1,369

 

Change in fair value of warrant liabilities

 

 

251

 

Extinguishment of warrant liabilities

 

 

(1,620

)

Fair value of Level 3 liabilities as of July 31, 2026

 

$

—