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 $335,000 and $152,000 was recognized for the three months ended January 31, 2019 and 2018, respectively. The increase in 2019 is due to the increased expense associated with stock options granted during the period. Stock-based compensation in the amount of $498,000 and $848,000 was recognized for the nine months ended January 31, 2019 and 2018, respectively. Included in stock-based compensation expense for the nine months ended January 31, 2018 under general and administrative line item is an option modification charge of $57,000. Stock-based compensation expense was recognized as follows (table in thousands):



	Three Months Ended January 31,				Nine Months Ended January 31,
	2019		2018		2019		2018
General and administrative	$	251	$	110	$	326	$	614
Sales and marketing	53		7		100		47
Research and development	4		33		13		156
Cost of oncology services	27		2		59		31
Total stock-based compensation expense	$	335	$	152	$	498	$	848

On January 31, 2019, there was $970,000 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, 2019 and 2018 were as follows:



	Three Months Ended January 31,		Nine Months Ended January 31,
	2019	2018	2019	2018
Expected term in years	3-6	3	3-6	3-6
Risk-free interest rates	2.57% - 3.00%	1.98%	2.57% - 3.00%	1.77%-1.98%
Volatility	64.55%-84.91%	85.59%	64.55%-84.91%	85.59%-87.66%
Dividend yield	—%	—%	—%	—%

The weighted average fair value of stock options granted during the three months ended January 31, 2019 and 2018 was $5.76 and $2.32, respectively, and $6.03 and $1.95 for the nine months ended January 31, 2019 and 2018, respectively. The Company’s stock options activity for the nine months ended January 31, 2019 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, 2018	50,000	2,655,845		2,705,845		$	2.85	5.9	$	5,265,000
Granted	—	206,790		206,790		9.86		8.1	—
Exercised	—	(357,242	)	(357,242	)	2.18		4.7	2,782,000
Forfeited	—	(8,375	)	(8,375	)	—
Canceled	—	(40,183	)	(40,183	)	2.10			370,626
Expired	—	(16,667	)	(16,667	)	—

Outstanding, January 31, 2019	50,000	2,440,168		2,490,168		3.45		5.6	$	22,036,000

Vested and expected to vest as of January 31, 2019	50,000	2,440,168		2,490,168		3.45		5.6	$	22,036,000

Exercisable as of January 31, 2019	25,836	2,109,252		2,135,088		2.89		5.1	$	20,087,000

Canceled shares represents a cashless payment for the net settlement of options exercised during the period. These shares were withheld by Champions Oncology, Inc. at the request of the option holder for payment of the exercise price based on the market price of Champions Oncology, Inc. common stock on the date of exercise and immediately canceled.

Stock Purchase Warrants

As of January 31, 2019 and April 30, 2018, the Company had warrants outstanding for the purchase of 1,671,440 and 2,004,284, respectively, 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, 2018	2,004,284		$	5.57	1.8	$	—
Granted	—		—		—	—
Exercised	(247,468	)	5.16		—	668,195
Canceled	(85,376	)	4.80		—	628,128
Expired	—		—		—	—

Outstanding, January 31, 2019	1,671,440		$	5.58	1.1	$	12,044,000

Canceled shares represents a cashless payment for the net settlement of warrants exercised during the period. These shares underlying the warrants were withheld by Champions Oncology, Inc. at the request of the warrant holder for payment of the exercise price based on the market price of Champions Oncology, Inc. common stock on the date of exercise and immediately canceled.