Share-Based Payments

The Company has in place a 2010 Equity Incentive Plan and a 2008 Equity Incentive Plan. In general, these plans provide for stock-based compensation in the form of (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.

On June 30, 2017, the Board of Directors extended the expiration terms of the previous Chief Commercial Officer's vested grants to December 30, 2019. As a result of this modification, the Company had an additional stock option expense of $56,529 which was expensed under the "General and Administrative" line item on the consolidated statement of operations.

Stock-based compensation in the amount of $564,000 and $1.1 million was recognized for the three months ended July 31, 2017 and 2016, respectively. Included in 2017 stock-based compensation expense under general and administrative line item is an option modification charge of $56,529. Stock-based compensation expense was recognized as follows (table in thousands):



	Three Months Ended July 31,
	2017		2016
General and administrative	$	423	$	830
Sales and marketing	34		168
Research and development	80		85
TOS cost of sales	26		44
POS cost of sales	1		2
Total stock-based compensation expense	$	564	$	1,129

On July 31, 2017, there was $300,371 in unrecognized stock based compensation which will be recognized as expense over three years.

Stock Option Grants

Black-Scholes assumptions used to calculate the fair value of options granted during the three months ended July 31, 2017 and 2016 were as follows:



	Three Months Ended July 31,
	2017	2016
Expected term in years	6	2.6 - 6
Risk-free interest rates	1.98%	0.75% - 1.25%
Volatility	87.1%	73.2% - 95.6%
Dividend yield	—%	—%

The weighted average fair value of stock options granted during the three months ended July 31, 2017 and 2016 was $1.84 and $1.79, respectively. The Company’s stock options activity for the three months ended July 31, 2017 was as follows:



	Non- Employees	Directors and Employees		Total		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding, May 1, 2017	50,000	2,258,704		2,308,704		$	2.86	6.1	$	1,282,000
Granted	—	194,977		194,977		2.51
Exercised	—	—		—		—
Forfeited	—	(1,875	)	(1,875	)	7.76
Canceled	—	—		—		—
Expired	—	—		—		—

Outstanding, July 31, 2017	50,000	2,451,806		2,501,806		2.83		6.1	$	1,720,000

Vested and expected to vest as of July 31, 2017	50,000	2,451,806		2,501,806		2.83		6.1	$	1,720,000

Exercisable as of July 31, 2017	33,336	2,287,095		2,320,431		2.85		6.0	$	1,608,000

Stock Purchase Warrants

As of July 31, 2017 and April 30, 2017, the Company had warrants outstanding for the purchase of 2,004,284 shares of its common stock, all of which were exercisable. Activity related to these warrants, which expire at various dates through March 2020, is summarized as follows:



	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding, May 1, 2017	2,004,284	$	5.57	2.8	$	—
Granted	—	—		—	—
Exercised	—	—		—	—
Expired	—	—		—	—

Outstanding, July 31, 2017	2,004,284	$	5.57	2.5	$	—