NOTE J - STOCK OPTIONS AND WARRANTS

12 Months Ended

Apr. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE J - STOCK OPTIONS AND WARRANTS

Options:

During the fiscal year ended April 30, 2015, four employees agreed to exchange 3,999 options exercisable at $7.50 per share and 28,667 options exercisable at $ 1.65 per share for 113,338 shares of the Company’s common stock, valued at $77,460. The shares will vest as follows: 37,780 shares on June 30, 2014; 37,777 shares on June 30, 2015; and 37,777 shares on June 30, 2016.  Only 31,780 shares of the initial 37,780 shares were issued during the year ended April 30, 2015. The shares were authorized/issued from the 2005 Stock Incentive Compensation Plan.

Pursuant to resolutions of the Company’s Board of Directors in August 2014, the exercise price on the 327,335 options held by the Company’ s officers and directors was reduced to $0.50 per share from exercise prices ranging from $0.60 to $14.355, and the expiration dates were extended by two years. The $63,149 valuation of this action was fully expensed during the year.

No options were granted during the fiscal years ended April 30, 2016 and 2015.

The following table summarizes common stock options issued to officers, directors and employees outstanding and the related exercise price.

Options Outstanding							Options Exercisable
Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price			Number Exercisable		Weighted Average Exercise Price
	327,335		1.12		$	0.50		327,335		$	0.50

Transactions involving stock options issued to officers, directors and employees are summarized as follows:

	Number of Shares			Weighted Average Price Per Share
Outstanding at April 30, 2014		360,001		$	2.41
Granted		-			-
Exercised		(32,666	)		2.37
Canceled or expired		-			-
Outstanding at April 30, 2015		327,335		$	0.50
Granted		-			-
Exercised		-			-
Canceled or expired		-			-
Outstanding at April 30, 2016		327,335		$	0.50

Warrants:

During the year ended April 30, 2015, the Company issued two warrants to purchase an aggregate of 190,000 shares of common stock to a consultant. The warrant to purchase 150,000 shares were initially valued at $30,918 using the Black-Sholes option-pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 140%, (3) risk-free interest rate of 0.95%, and (4) expected life of 3 years. The warrant to purchase 40,000 shares were initially valued at $7, 707 using the Black-Sholes option-pricing model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 140%, (3) risk-free interest rate of 1.62%, and (4) expected life of 5 years. The warrants have exercise prices of $0.40 and $0.80 respectively, and are fully vested.

The following table summarizes the changes in warrants outstanding and the related prices for the shares of the Company’s common stock issued to non-employees of the Company.

		Warrants Outstanding						Warrants Exercisable
Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	1.275		1,961		.08	$	1.275		1,961	$	1.275
$	0.8475		69,199		0.40	$	0.8475		69,199	$	0.8475
$	0.80		20,000		1.67	$	0.80		20,000	$	0.80
$	0.75		21,680		0.33	$	0.75		21,680	$	0.75
$	0.65		40,000		3.51	$	0.65		40,000	$	0.65
$	0.60		40,000		1.15	$	0.60		40,000	$	0.60
$	0.40		150,000		1.49	$	0.40		150,000	$	0.40
			342,840		1.39	$	0.59		342,840	$	0.59

Transactions involving stock warrants issued to non-employees are summarized as follows:

	Number of Shares			Weighted Average Exercise Price Per Share
Outstanding at April 30, 2014		397,885		$	1.99
Granted		190,000			0.45
Exercised		(167,122	)		0.85
Canceled or expired		-			-
Outstanding at April 30, 2015		420,763			0.66
Granted		-			-
Exercised		-			-
Canceled or expired		(77,923	)		0.98
Outstanding at April 30, 2016		342,840		$	0.59

The weighted-average fair value of stock warrants granted to non-employees during the year ended April 30, 2015 was $0.20, and the weighted-average significant assumptions used to determine those fair values, using a Black-Scholes option-pricing model are as follows:

	2015
Significant assumptions (weighted-average):
Risk-free interest rate at grant date		1.09	%
Expected stock price volatility		140	%
Expected dividend payout		-
Expected option life-years		3.42

The amount of the initial expenses charged to operations for compensatory warrants granted in exchange for services was $38,625 for the year ended April 30, 2015.