Stock-based Payments

12 Months Ended

Apr. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock-based compensation in the amount of $598,000 and $600,000 was recognized for years ended April 30, 2021 and 2020, respectively. Stock-based compensation costs were recorded as follows (in thousands):


	Year Ended April 30,
	2021		2020
General and administrative	$	292	$	328
Sales and marketing	199		237
Research and development	23		13
TOS cost of sales	84		21
POS cost of sales	—		1

Total stock-based compensation expense	$	598	$	600

2010 Equity Incentive Plan

On February 18, 2011, shareholders owning a majority of the issued and outstanding shares of the Company executed a written consent approving the 2010 Equity Incentive Plan (“2010 Equity Plan”). The purpose of the 2010 Equity Plan is to grant (i) Non-statutory Stock Options; (ii) Restricted Stock Awards; and (iii) Stock Appreciation Rights (collectively, stock-based compensation) to its employees, directors and non-employees. Total stock awards under the 2010 Equity Plan shall not exceed 30,000,000 shares of common stock. Options and Stock Appreciation Rights expire no later than ten years from the date of grant and the awards vest as determined by the Board of Directors. Options and Stock Appreciation Rights have a strike price not less than 100% of the fair market value of the common stock subject to the option or right at the date of grant.

2008 Equity Incentive Plan

The Company has previously granted (i) Non-statutory Stock Options; (ii) Restricted Stock Awards; and (iii) Stock Appreciation Rights (collectively, stock-based compensation) to its employees, directors and non-employees under a 2008 Equity Incentive Plan (the “2008 Equity Plan”). Such awards may be granted by the Company’s Board of Directors. Options granted under the 2008 Equity Plan expire no later than ten years from the date of grant and the awards vest as determined by the Board of Directors.

For stock-based payments to non-employee consultants under both the 2010 and 2008 Equity Plan, the fair value of the stock-based consideration issued is used to measure the transaction, as management believes this to be a more reliable measure of fair value than the services received. The fair value of the award is expensed over the period service is provided to the Company; however, it is ultimately measured at the price of the Company’s common stock or the fair value of stock options using the Black-Scholes valuation model on the date that the commitment for performance by the non-employee consultant has been reached or performance is complete, which is generally the vesting date of the award.

Director Compensation Plan

On December 12, 2013, the Compensation Committee of the Board of Directors of the Company adopted changes to the Director Compensation Plan of 2010 (the “Director Plan”) effective December 1, 2013. Under the Director Plan, independent directors of the Company are entitled to an annual award of a five-year option to purchase 8,333 shares of the Company’s common stock, and the Chairman of the Board of the Company is entitled to an annual award of a five years option to purchase 16,667 shares of the Company’s common stock. Independent directors who serve as chairperson of a committee will also receive an annual grant of a five-year option to purchase 1,667 shares of the Company’s common stock. All options issued under the Director Plan vest quarterly at a rate of 25%. Option grants will typically be issued after the annual shareholder meeting which will generally be held in October of each year. New directors will receive a grant upon joining the Board equal to the pro-rata annual grant for the remainder of the year. Options issued under the Director Plan are issued pursuant to the 2010 Equity Plan.

Stock Option Grants

Black-Scholes assumptions used to calculate the fair value of options granted during the years ended April 30, 2021 and 2020 were as follows:


	Year Ended April 30,
	2021	2020
Expected term in years	3-6	3 - 6
Risk-free interest rates	0.1% - 0.5%	1.3% - 1.8%
Volatility	70% - 75%	69% - 71%
Dividend yield	—%	—%

The weighted average fair value of stock options granted during the years ending April 30, 2021 and 2020, was $5.11 and $5.33, respectively. The Company’s stock options activity and related information as of and for the years ended April 30, 2021 and 2020 is as follows:


	Non- Employees	Directors and Employees	Total	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding, May 1, 2020	43,332	2,228,326	2,271,658	$	3.23	5.0	$	10,663,000
Granted	—	135,834	135,834	9.24		7.3	$	259,000
Exercised	(1,160)	(686,178)	(687,338)	2.33
Canceled	(923)	(47,751)	(48,674)	6.03
Forfeited	—	(12,000)	(12,000)	7.48
Expired	(5,834)	—	(5,834)	10.80

Outstanding, April 30, 2021	35,415	1,618,231	1,653,646	3.96		5.4	$	11,384,000

Vested and expected to vest as of April 30, 2021	35,415	1,618,231	1,653,646	3.96		5.4	$	11,384,000

Vested as of April 30, 2021	9,584	1,323,270	1,332,854	3.34		4.8	$	9,995,000


	Non- Employees	Directors and Employees	Total	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding, May 1, 2019	50,000	2,373,626	2,423,626	$	3.19	5.3	$	14,557,000
Granted	—	229,833	229,833	5.33		8.1	544,000
Exercised	—	(248,495)	(248,495)	2.31
Canceled	—	(11,824)	(11,824)	7.96
Forfeited	—	(44,813)	(44,813)	7.85
Expired	(6,668)	(70,001)	(76,669)	8.04

Outstanding, April 30, 2020	43,332	2,228,326	2,271,658	3.23		5.0	$	10,663,000

Vested and expected to vest as of April 30, 2020	43,332	2,228,326	2,271,658	3.23		5.0	$	10,663,000

Vested as of April 30, 2020	17,501	1,926,117	1,943,618	2.83		4.5	$	9,898,000

Stock Purchase Warrants

As of April 30, 2021 and 2020, the Company had zero warrants outstanding for the purchase of shares of its common stock, as all those that were exercisable as of April 30, 2019 were either exercised or expired by March 2020. For the year ending April 30, 2020, the Company received cash proceeds related to the exercise of these warrants of approximately $3.9 million. Activity related to warrants is summarized in the following table. Approximately 161,000 shares noted as exercised below were done so via a cash-less exercise basis.


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding, May 1, 2019	1,671,440	$	6.20	0.9	$	5,730,000
Granted	—	—		—	—
Exercised	(858,695)	5.62		—	10,045,000
Forfeited	(760,601)	5.76		—	8,587,000
Expired	(52,144)	4.85		—	700,000

Outstanding, April 30, 2020	—	$	—	—	$	—