Share-Based Payments

6 Months Ended

Oct. 31, 2012

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

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

Note 5. 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 $624,000 and $855,000 was recognized for the three months ended October 31, 2012 and 2011, respectively, and $1,364,000 and $1,868,000 for the six months ended October 31, 2012 and 2011, respectively. Stock-based compensation expense was recognized as follows (in thousands):

	Three Months Ended				Six Months Ended
	October 31,				October 31,
	2012		2011		2012		2011
General and administrative	$	550	$	754	$	1,119	$	1,668
Sales and marketing		61		61		143		120
Research and development		3		24		29		48
TOS cost of sales		4		16		12		32
POS cost of sales		6		-		61		-
Total stock-based compensation expense	$	624	$	855	$	1,364	$	1,868

Stock Option Grants

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

	Three Months Ended
	October 31, 2012
Expected term in years		6.0
Risk-free interest rates		0.9	%
Volatility		99% - 100	%
Dividend yield		0	%

	Six Months Ended
	October 31, 2012
Expected term in years		6.0
Risk-free interest rates		0.8% - 0.9	%
Volatility		99% - 100	%
Dividend yield		0	%

The weighted average fair value of stock options granted during the three months ended October 31, 2012 and 2011 was $0.26 and $0.37, respectively. The weighted average fair value of stock options granted during the six months ended October 31, 2012 and 2011 was $0.52 and $0.63, respectively. The Company’s stock options activity for the six months ended October 31, 2012 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, 2012		1,410,000			13,456,038			14,866,038		$	0.88		7.6	$	-
Granted		40,000			251,250			291,250			0.54				5,000
Exercised		-			-			-			-
Forfeited		-			-			-			-
Expired		(500,000	)		(13,333	)		(513,333	)		0.76
Change in employee status		-			-			-			-
Outstanding, October 31, 2012		950,000			13,693,955			14,643,955			0.87		7.4		5,000
Vested and expected to vest as of October 31, 2012		950,000			13,686,455			14,636,455			0.87		7.1		5,000
Exercisable as of October 31, 2012		832,709			8,774,870			9,607,579			0.88		7.0		-

Restricted Stock Grants

A summary of the activity related to restricted stock grants is as follows (in thousands):

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

The aggregate fair value of shares vested during the six months ended October 31, 2012 and 2011 was $11,000 and $75,000, respectively.

Stock Purchase Warrants

As of October 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 6. The weighted average exercise price of all warrants outstanding is $0.91. As of October 31, 2012 and April 30, 2012, these warrants had no intrinsic value and had weighted average remaining contractual lives of 3.3 and 3.8 years, respectively.