STOCK OPTIONS AND INCENTIVE PLANS

12 Months Ended

Apr. 30, 2013

STOCK OPTIONS AND INCENTIVE PLANS [Abstract]

STOCK OPTIONS AND INCENTIVE PLANS

5. STOCK OPTIONS AND INCENTIVE PLANS

The following represents the outstanding and exercisable number of shares, weighted average exercise price and weighted average remaining contractual life of options outstanding and exercisable.

We issued 7,262,064 stock options on December 31, 2010 expiring on December 31, 2015. The exercise price for the incentive stock options is $0.49 (closing price as of December 31, 2010). The incentive stock options are allocated in three groups with two conditions for vesting. The first condition is stock price and the second condition is time:

Year 1: Target $0.92

· 2,420,688 options that can be exercised after December 31, 2011 once the share price reaches $0.92

Year 2: Target $1.41

· 2,420,688 options that can be exercised after December 31, 2012 once the share price reaches $1.41

Year 3: Target $1.90

· 2,420,688 options that can be exercised after December 31, 2013 once the share price reaches $1.90

We used the Black-Scholes model to value the options and used assumptions of ultimately how many option shares would vest based on our experience. The value of the option shares is $684 and this will be expensed over the vesting term using the active employment to determine monthly expense. For the fiscal year ended April 30, 2013 we expensed $110. The remaining amount will be expensed through fiscal 2014. The fair value of the option shares used the following weighted average assumptions: Strike Price $1.36; Stock Price $0.49; Volatility 125%; Term 3.1 years; Dividend yield 0% and Interest Rate 1.01%.

A summary of stock options and warrants is as follows:

	2013		2012		2011
Options exercisable at April 30		0		0		0
Weighted average fair value per share options granted per year	$	0.49	$	0.49	$	0.49

Range of Exercise Prices			Number Outstanding and Exercisable		Weighted Average Remaining Contract Life	Weighted Average Exercise and Outstanding Price
	$	0.49		0	2.1 years		$	0.49

	Options		Average Price
Outstanding beginning 04/30/2010		1,224,834	$	0.80
Granted		7,262,064		0.49
Expired		1,224,834		0.79
Exercised		-		-
Outstanding ending 04/30/2011		7,262,064	$	0.49
Outstanding beginning 04/30/2011		7,262,064	$	0.49
Granted		-		-
Expired		-		-
Exercised		-		-
Outstanding ending 04/30/2012		7,262,064	$	0.49

Outstanding beginning 04/30/2012	7,262,064	$	0.49
Granted	-		-
Expired	-		-
Exercised	-		-
Outstanding ending 04/30/2013	7,262,064	$	0.49