v3.25.2
Fair Value Measurement
 12 Months Ended
Apr. 30, 2025
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]  
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 April 30, 2025 and 2024.

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

April 30, 2025

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

237,595

 

 

$

—

 

 

$

—

 

Restricted cash

 

 

334

 

 

 

—

 

 

 

—

 

Total assets

 

$

237,929

 

 

$

—

 

 

$

—

 

Liabilities

 

 

 

 

 

 

 

 

 

Warrant liabilities

 

 

—

 

 

 

—

 

 

 

8,097

 

Total liabilities

 

$

—

 

 

$

—

 

 

$

8,097

 

 

 

 

 

 

 

 

 

 

 

April 30, 2024

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

8,249

 

 

$

—

 

 

$

—

 

Restricted cash

 

 

334

 

 

 

—

 

 

 

—

 

Total assets

 

$

8,583

 

 

$

—

 

 

$

—

 

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.

As of April 30, 2025 and 2024, the fair value of the long-term debt, net of discounts, approximated $47,330 and $43,870, 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.

The Term Loan was transferred out from the Level 2 fair value hierarchy during the year ended April 30, 2024 when the Company paid off and terminated the Term Loan. In the same period, the Term Loan 2024 was transferred into the Level 2 fair value hierarchy. Other than those items, there were no transfers into or out of the Level 1, 2 or 3 fair value hierarchies during the years ended April 30, 2025 and 2024.

Warrant Liabilities

As of April 30, 2025, 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.

As of April 30, 2025, 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 was $2,648 for the year ended April 30, 2025, which is included in other expense within the 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, 2025:

 

 

April 30, 2025

 

Strike price

 

$

11.54

 

Expected term (in years)

 

 

8.42

 

Expected volatility

 

 

65.0

%

Risk free rate

 

 

4.21

%

Dividend yield

 

 

0.0

%

A reconciliation of the Level 3 liabilities is as follows:

Fair value of warrant liabilities at issuance on March 7, 2025

 

$

5,449

 

Change in fair value of warrant liabilities

 

 

2,648

 

Fair value of Level 3 liabilities as of April 30, 2025

 

$

8,097