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Share-Based Payments
 9 Months Ended
Jan. 31, 2012
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 $743,000 and $1,209,000 was recognized for the three months ended January 31, 2012 and 2011, respectively, and $2,612,000 and $1,578,000 for the nine months ended January 31, 2012 and 2011, respectively. Stock-based compensation expense was recognized as follows:

 

    Three Months Ended     Nine Months Ended  
    January 31,     January 31,  
    2012     2011     2012     2011  
(Dollars in thousands)    
General and administrative   $ 701     $ 1,119     $ 2,370     $ 1,418  
Cost of sales     1       -       2       -  
Sales and marketing     49       51       168       53  
Research and development     (8 )     39       72       107  
                                 
Total stock-based compensation expense   $ 743     $ 1,209     $ 2,612     $ 1,578  

 

Stock Option Grants

 

Black-Scholes assumptions used to calculate the fair value of options granted during the three and nine months ended January 31, 2012 and 2011 were as follows:

 

    Three Months Ended     Nine Months Ended  
    January 31,     January 31,  
    2012     2011     2012     2011  
                         
Expected term in years      3.0-6.0       6.0        3.0-6.0       6.0  
Risk-free interest rates      .4%-1.9%         1.5% - 2.5%         .4%-2.2%        1.5% - 2.5%   
Volatility      90%-101%         105% - 107%        90%-108%        104% - 107%   
Dividend yield     0%       0%       0%       0%  

 

The weighted average fair value of stock options granted during the three months ended January 31, 2012 and 2011 was $0.52 and $0.77, respectively. The weighted average fair value of stock options granted during the nine months ended January 31, 2012 and 2011 was $0.57 and $0.74, respectively. The Company’s stock options activity for the nine months ended January 31, 2012 is as follows:

 

                            Weighted      Aggregate  
                      Weighted     Average     Intrinsic  
          Directors           Average     Remaining     Value  
    Non-     and           Exercise     Contractual     (Dollars in  
    Employees     Employees     Total     Price     Life (Years)      Thousands)  
                                     
Outstanding, May 1, 2011     1,610,000       12,710,948       14,320,948     $ 0.88       8.4     $ 1,780  
Granted     75,000       1,310,000       1,385,000       0.77                  
Exercised     -       -       -       -                  
Forfeited     -       (301,915 )     (301,915 )     0.94                  
Expired     (315,000 )     (24,167 )     (339,167 )     0.24                  
Change in employee status     -       -       -       -                  
                                                 
Outstanding, January 31, 2012     1,370,000       13,694,866       15,064,866     $ 0.88       7.7     $ 28  
                                                 
Vested and expected to vest as of January 31, 2012     1,370,000       13,694,866       15,064,866     $ 0.88       7.7     $ 28  
                                                 
Exercisable as of January 31, 2012     1,291,667       3,112,356       4,404,022     $ 0.90       5.4     $ 27  

  

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     50,000       0.75  
Vested     (112,500 )     0.88  
Forfeited     -       -  
Expired     -       -  
                 
Nonvested as of January 31, 2012     37,500       0.75  

 

The aggregate fair value of shares vested during the nine months ended January 31, 2012 was $84,000.

 

Stock Purchase Warrants

 

As of January 31, 2012, 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 January 31, 2012, the weighted average exercise price of these warrants was $0.91, the weighted average contractual life was four years. No warrants were exercised during the three months ended January 31, 2012. During nine months ended January 31, 2012, 495,352 warrants were exercised.