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Share-Based Payments
 9 Months Ended
Jan. 31, 2013
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 the 2010 Equity Incentive Plan, the 2008 Equity Incentive Plan, and the 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 $570,000 and $743,000 was recognized for the three months ended January 31, 2013 and 2012, respectively, and $1,934,000 and $2,612,000 for the nine months ended January 31, 2013 and 2012, respectively. Stock-based compensation expense was recognized as follows (in thousands): 

    Three Months Ended     Nine Months Ended  
    January 31,     January 31,  
    2013     2012     2013     2012  
                         
General and administrative   $ 500     $ 701     $ 1,619     $ 2,370  
Sales and marketing     56       49       199       168  
Research and development     4       (8 )     33       72  
TOS cost of sales     4       1       16       2  
POS cost of sales     6       -       67       -  
                                 
Total stock-based compensation expense   $ 570     $ 743     $ 1,934     $ 2,612  

 

Stock Option Grants

 

Black-Scholes assumptions used to calculate the fair value of options granted during the three and nine months ended January 31, 2013 and 2012 were as follows: 

    Three Months Ended     Nine Months Ended  
    January 31,     January 31,  
    2013     2012     2013     2012  
                         
Expected term in years     6.0       3.0 - 6.0       6.0       3.0 - 6.0  
Risk-free interest rates     0.9% - 1.0%       0.4% - 1.9%       0.8% - 1.0%       0.4% - 2.2%  
Volatility     100% - 102%       90% - 101%       99% - 102%       90% - 108%  
Dividend yield     0%     0%       0%       0%  

 

The weighted average fair value of stock options granted during the three months ended January 31, 2013 and 2012 was $0.27 and $0.52, respectively. The weighted average fair value of stock options granted during the nine months ended January 31, 2013 and 2012 was $0.36 and $0.57, respectively. The Company’s stock option activity for the nine months ended January 31, 2013 was 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       7.0     $ -  
Granted     130,000       586,250       716,250       0.41                  
Forfeited     -       (22,500 )     (22,500 )     0.67                  
Expired     (500,000 )     (15,833 )     (515,833 )     0.76                  
Canceled     -       (25,000 )     (25,000 )     0.62                  
                                                 
Outstanding, January 31, 2013     1,040,000       13,978,955       15,018,955       0.86       7.1       96,000  
                                                 
Vested and expected to vest as of January 31, 2013     1,040,000       13,978,955       15,018,955                          
                                                 
Exercisable as of January 31, 2013     933,334       9,735,078       10,668,412       0.88       6.8       14,000  

 

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     100,000       0.30  
Vested     (50,000 )     0.53  
Forfeited     -       -  
Expired     -       -  
                 
Nonvested as of January 31, 2013     75,000       -  

 

The aggregate fair value of shares vested during the nine months ended January 31, 2013 and 2012 was $26,000 and $84,000, respectively.

 

Stock Purchase Warrants

 

As of January 31, 2013, the Company had warrants outstanding for the purchase of 3,276,667 shares of its common stock, all of which were exercisable. Of these warrants, 1,266,667 were issued in connection with the April 2011Private Placement (see Note 5) and 1,860,000 were issued in connection with the January 2013 Private Placement (see Note 5) and are accounted for as liabilities as further discussed in Note 5. The remaining 150,000 warrants are accounted for as equity instruments and expire July 31, 2014. As of January 31, 2013, the weighted average exercise price of all warrants outstanding was $0.77. As of January 31, 2013 and April 30, 2012, the warrants intrinsic value was $13,000 and $0, respectively, and had weighted average remaining contractual lives of 4.2 years and 3.8 years, respectively.