Share-Based Payments

6 Months Ended

Oct. 31, 2011

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

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

Note 4. Share-Based Payments

The Company has in place a 2010 Equity Incentive Plan, a 2008 Equity Incentive Plan and a Director Compensation Plan of 2010, all of which are described in more detail in the Company’s Annual Report on Form 10-K for the year ended April 30, 2011. In general, these plans provide for stock-based compensation in the form (i) Non-statutory Stock Options; (ii) Restricted Stock Awards; and (iii) Stock Appreciation Rights to the Company’s employees, directors and non-employees. The plans also provide for limits on the aggregate number of shares that may be granted, the term of grants and the strike price of option awards.

Stock-based compensation in the amount of $855,000 and $197,000 was recognized for the three months ended October 31, 2011 and 2010, respectively, and $1.9 million and $367,000 for the six months ended October 31, 2011 and 2010, respectively.  Stock-based compensation expense was recognized as follows:

	Three Months Ended				Six Months Ended
	October 31,				October 31,
	2011		2010		2011		2010
(Dollars in Thousands)
General and administrative	$	754	$	158	$	1,668	$	297
Cost of sales		16		10		32		19
Sales and marketing		61		2		120		2
Research and development		24		27		48		49
Total stock-based compensation expense	$	855	$	197	$	1,868	$	367

Stock Option Grants

Black-Scholes assumptions used to calculate the fair value of options granted during the three and six months ended October 31, 2011 and 2010 were as follows:

	Three Months Ended						Six Months Ended
	October 31,						October 31,
	2011			2010			2011			2010
Expected term in years		0.77-6.25			6.0			0.77-6.25			6.0
Risk-free interest rates		.4% - 1.4	%		1.6% - 1.7	%		.4% - 2.1	%		1.6% - 2.0	%
Volatility		90%-108	%		105	%		90%-108	%		104% - 105	%
Dividend yield		0	%		0	%		0	%		0	%

The weighted average fair value of stock options granted during the three months ended October 31, 2011 and 2010 was $0.37 and $0.73, respectively. The weighted average fair value of stock options granted during the six months ended October 31, 2011 and 2010 was $0.63 and $0.73, respectively. The Company’s stock options activity for the six months ended October 31, 2011 is as follows:

											Weighted
									Weighted		Average
			Directors						Average		Remaining		Aggregate
	Non-		and						Exercise		Contractual		Intrinsic
	Employees		Employees			Total			Price		Life (Years)		Value
Outstanding, May 1, 2011		1,610,000		12,710,948			14,320,948		$	0.88		8.4	$	1,780,000
Granted		60,000		285,000			345,000			0.88
Exercised		-		-			-
Forfeited		-		(50,000	)		(50,000	)		0.90
Expired		-		-			-
Change in employee status		-		-			-
Outstanding, October 31, 2011		1,670,000		12,945,948			14,615,948		$	0.88		7.8	$	186,200
Vested and expected to vest as of October 31, 2011		1,670,000		12,926,962			14,596,962		$	0.88		7.8	$	186,028
Exercisable as of October 31, 2011		1,556,665		4,791,544			6,348,209		$	0.86		6.5	$	182,700

Restricted Stock Grants

A summary of the activity related to restricted stock grants is as follows:

				Weighted
				Average
				Grant
				Date Fair
	Total			Value Per
	Shares			Share
Nonvested as of May 1, 2011		100,000		$	0.90
Granted		-			-
Vested		(100,000	)		0.90
Forfeited		-			-
Expired		-			-
Nonvested as of October 31, 2011		-

The aggregate fair value of shares vested during the six months ended October 31, 2011 was $75,000.

Stock Purchase Warrants

As of October 31, 2011, the Company has warrants outstanding for the purchase of 1,416,667 shares of its common stock, all of which are exercisable.  Of these warrants, 1,266,667 were issued in connection with the April 2011 financing arrangement and are accounted for as liabilities as further discussed in Note 5. As of October 31, 2011, the weighted average exercise price of these warrants was $0.91, the weighted average contractual life was 4.31 years. 480,352 and 495,352 warrants were exercised during the three and six months ended October 31, 2011, respectively.