Stock-based Payments

12 Months Ended

Apr. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock-based compensation in the amount of $912,000 and $598,000 was recognized for years ended April 30, 2022 and 2021, respectively. Stock-based compensation costs were recorded as follows (in thousands):


	Year Ended April 30,
	2022		2021
General and administrative	$	563	$	292
Sales and marketing	189		199
Research and development	18		23
TOS cost of sales	142		84


Total stock-based compensation expense	$	912	$	598

The Company has in place a 2021 Equity Incentive Plan, 2010 Equity Incentive Plan and 2008 Equity Incentive Plan ("the Plans"). In general, these plans provide for stock-based compensation 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.

2021 Equity Incentive Plan

As part of the 2021 Annual Shareholders Meeting, shareholders approved the adoption of the 2021 Equity Incentive Plan (“2021 Equity Plan”). The purpose of the 2021 Equity Plan is to grant (i) Non-statutory Stock Options; (ii) Incentive Stock Options; (iii) Restricted Stock Awards; and/or (iv) Stock Appreciation Rights (collectively, stock-based compensation) to its employees, directors and non-employees. Total stock awards under the 2021 Equity Plan shall not exceed 2 million 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. As of April 30, 2022, approximately 1.8 million shares were left to issue under this plan.

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. After February 2021, no more shares were available to be issued from this plan.

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 the Plans, 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. After 2018, no more shares were available to be issued from this plan.

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-year 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 now issued pursuant to the 2021 Equity Plan.

Stock Option Grants

Black-Scholes assumptions used to calculate the fair value of options granted during the years ended April 30, 2022 and 2021 were as follows:


	Year Ended April 30,
	2022	2021
Expected term in years	6	3 - 6
Risk-free interest rates	0.8% - 1.2%	0.1% - 0.5%
Volatility	64% - 66%	70% - 75%
Dividend yield	—%	—%

The weighted average fair value of stock options granted during the years ending April 30, 2022 and 2021, was $5.56 and $5.11, respectively. The Company’s stock options activity and related information as of and for the years ended April 30, 2022 and 2021 is as follows:


	Directors and Employees	Non- Employees	Total	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding, May 1, 2021	1,618,231	35,415	1,653,646	$	3.96	5.4	$	11,384,000
Granted	155,552	10,500	166,052	9.44		9.3	$	—
Exercised	(108,375)	—	(108,375)	2.29
Canceled	(11,209)	—	(11,209)	4.71
Forfeited	(36,875)	—	(36,875)	7.45
Expired	—	(5,000)	(5,000)	9.60

Outstanding, April 30, 2022	1,617,324	40,915	1,658,239	4.51		4.9	$	6,131,000

Vested and expected to vest as of April 30, 2022	1,617,324	40,915	1,658,239	4.51		4.9	$	6,131,000

Vested as of April 30, 2022	1,349,895	4,584	1,354,479	3.93		4.2	$	5,778,000


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

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

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

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