Share-Based Payments

3 Months Ended

Jul. 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. 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 $739,000 and $1,014,000 was recognized for the three months ended July 31, 2012 and 2011, respectively.  Stock-based compensation expense was recognized as follows (in thousands):

	Three Months Ended July 31,
	2012		2011
General and administrative		570		916
Sales and marketing		82		74
Research and development		24		24
TOS cost of sales		8		-
POS cost of sales		55		-
Total stock-based compensation expense		739		1,014

Stock Option Grants

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

 The weighted average fair value of stock options granted during the three months ended July 31, 2012 and 2011 was $0.54 and $0.74, respectively. The Company’s stock options activity for the three months ended July 31, 2012 is as follows:

Expected term in years	6.0
Risk-free interest rates	0.8% to 0.9	%
Volatility	98.5% to 98.8	%
Dividend yield	0	%

											Weighted
									Weighted		Average
			Directors						Average		Remaining		Aggregate
	Non-		and						Exercise		Contractual		Intrinsic
	Employees		Employees			Total			Price		Life (Years)		Value
Outstanding, May 1, 2012		1,410,000		13,456,038			14,866,038		$	0.88		7.6	$	-
Granted		15,000		236,250			251,250			0.57
Exercised		-		-			-			-
Forfeited		-		-			-			-
Expired		-		(13,333	)		(13,333	)		0.95
Change in employee status		-		-			-			-
Outstanding, July 31, 2012		1,425,000		13,678,955			15,103,955			0.87		7.4		-
Vested and expected to
vest as of July 31, 2012		1,425,000		13,678,955			15,103,955			0.87		7.4		-
Exercisable as of
July 31, 2012		1,248,333		7,711,677			8,960,010			0.88		6.7		-

Restricted Stock Grants

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

				Weighted
				Average
				Grant Date
	Total			Fair Value
	Shares			Per Share
Nonvested, May 1, 2012		25,000		$	0.75
Granted		-			-
Vested		(12,500	)		0.75
Forfeited		-			-
Expired		-			-
Nonvested as of July 31, 2012		12,500			0.75

The aggregate fair value of shares vested during the three months ended July 31, 2012 and 2011 was $5,000 and $43,000, respectively.

Stock Purchase Warrants

As of July 31, 2012, the Company had warrants outstanding for the purchase of 1,416,667 shares of its common stock, all of which were 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.  The weighted average exercise price of all warrants outstanding is $0.91. As of July 31, 2012 and April 30, 2012, these warrants had no intrinsic value and had weighted average remaining contractual lives of 3.6 and 3.8 years, respectively.