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.

Stock-based compensation in the amount of $152,000 and $237,000 was recognized for the three months ended January 31, 2018 and 2017, respectively, and $863,000 and $1.9 million was recognized for the nine months ended January 31, 2018 and 2017, respectively. Included in stock-based compensation expense for the the nine months ended January 31, 2018 under general and administrative line item is an option modification charge of $56,529 and $15,000 related to the issuance of common stock as compensation for services performed. Stock-based compensation expense was recognized as follows (table in thousands):



	Three Months Ended January 31,				Nine Months Ended January 31,
	2018		2017		2018		2017
General and administrative	$	110	$	184	$	629	$	1,482
Sales and marketing	7		7		47		194
Research and development	33		44		156		174
TOS cost of sales	2		2		30		49
POS cost of sales	—		—		1		2
Total stock-based compensation expense	$	152	$	237	$	863	$	1,901

On January 31, 2018, there was $203,420 in unrecognized stock based compensation which will be recognized as expense over 4.3 years.

Stock Option Grants

Black-Scholes assumptions used to calculate the fair value of options granted during the three and nine months ended January 31, 2018 and 2017 were as follows:



	Three Months Ended January 31,		Nine Months Ended January 31,
	2018	2017	2018	2017
Expected term in years	3	3	3 - 6	3 - 6
Risk-free interest rates	1.98%	0.59% - 1.90%	1.77% - 1.98%	0.59% - 1.90%
Volatility	85.59%	72.12% - 87.96%	85.59% - 87.66%	72.12% - 87.96%
Dividend yield	—%	—%	—%	—%

The weighted average fair value of stock options granted during the three months ended January 31, 2018 and 2017 was $2.32 and $1.35, respectively, and $1.95 and $1.71 was recognized for the nine months ended January 31, 2018 and 2017, respectively. The Company’s stock options activity for the nine months ended January 31, 2018 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	—	267,310		267,310		2.68
Exercised	—	(12,500	)	(12,500	)	3.00
Forfeited	—	(6,042	)	(6,042	)	7.58
Canceled	—	—		—		—
Expired	—	(38,627	)	(38,627	)	5.21

Outstanding, January 31, 2018	50,000	2,468,845		2,518,845		2.80		5.8	$	3,921,000

Vested and expected to vest as of January 31, 2018	50,000	2,468,845		2,518,845		2.80		5.8	$	3,921,000

Exercisable as of January 31, 2018	25,836	2,389,471		2,415,307		2.77		5.7	$	3,847,000

Stock Purchase Warrants

As of January 31, 2018 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, January 31, 2018	2,004,284	$	5.57	2.3	$	—